baseline survey report - mekong institute

BASELINE SURVEY REPORT

PROJECT ON “ENHANCING COMPETITIVENESS OF SMALL AND MEDIUM-SIZED ENTERPRISES IN

THE SOUTHERN ECONOMIC CORRIDOR OF ASEAN MEKONG SUB-REGION (AMS)”

MARCH 2017

Baseline Survey Report

Project on “Enhancing Competitiveness of Small and Medium-sized Enterprises in

the Southern Economic Corridor of ASEAN Mekong Sub-region (AMS)”

March 2017

Mekong Institute (MI) Khon Kaen, Thailand

TRADE & INVESTMENT FACILITATION (TIF) DEPARTMENT, MEKONG INSTITUTE 2

The Study Team

Trade & Investment Facilitation (TIF) Department Mekong Institute (MI)

Madhurjya Kumar Dutta, Program Director

Quan Anh Nguyen, Program Specialist Sa-nga Sattanun, Program Manager

Toru Hisada, Senior Project Coordinator Seang Sopheak, Program Coordinator

Ronnarith Chaiyo-seang, Program Officer Pham Thi Thuy Chi, Consultant

Project Baseline Survey: Project on “Enhancing Competitiveness of Small and Medium-Sized Enterprises (SMEs) in the Southern Economic Corridor of ASEAN Mekong Subregion (AMS)” Study conducted in: Cambodia, Myanmar, Thailand & Vietnam Period of Study: September – November 2016


ACKNOWLEDGEMENT

This baseline survey was possible with the support from MI team and partners from the 19 provinces in the four countries. Our great gratitude is to the MI team and the local partners to make all the necessary arrangements for such challenging field visits. In particular, we would like to thank a number of SME representatives, processors, farmers, and local government officials who have shared their information on our long lists of questions. This baseline report benefits from comments of the MI team, to whom we would like to thank for their insights and suggestions in different rounds of revision for this report.


EXECUTIVE SUMMARY

This is the baseline survey made for the project “Enhancing Competitiveness of Small and Medium- sized Enterprises (SMEs) in the Southern Economic Corridor (SEC) of ASEAN Mekong Sub region (AMS)” for the period 2016 – 2018. The Project is supported by the Government of Japan through Japan-ASEAN Integration Fund (JAIF) and covers a wide geographical area of 19 provinces in the SEC. With capacity development programs provided to local SMEs, CCIs, government officials and stakeholders, the project is about to (i) formulate SME clusters and integrate them into the regional value chains; (ii) to facilitate trade and investment promotions for the SME clusters though a number of trade and investment promotion events as well as SME database developments; and (iii) strengthen the business development services (BDS) providers to improve the coverage and quality of BDS services available to the target SME clusters. The methods used for this baseline survey is a combination of both desk study and data collection from an intensive field visit. In terms of desk review, Project Design Document and the “Study on Market and Value Chain Mapping” commissioned by the Project were reviewed to formulate an overview of the potential SME clusters and the related actors and stakeholders. Based on this review, the field visit was planned in order to collect information from SME representatives, state management agencies (provincial government departments and offices), and other non-SME and SME-related stakeholders in the selected value chains of all the target SME clusters. During the field visit, a combination of in-depth interview, focus group discussion (FGD), and questionnaires (to be filled in by SME representative without facilitation from the consultant) was adopted. Data collected for this baseline survey includes (i) figures and perceptions from SMEs, other non-SME and SME-related stakeholders in the selected value chains through in-depth interview and FGDs; and (ii) information provided by SME representatives in the questionnaire that was distributed to them and collected by the project local focal point. Using the information collected from the field visits, the success measures and indicators of the project were informed at the baseline of the project. Due to data availability and the nature of these success measures and indicators, not all the success criteria were fully informed. The baseline results could be broadly classified into three different groups: (i) the measures and indicators that could be ‘fully’ informed; (ii) the measures and indicators that cannot be informed at the baseline as these are the output or outcomes of the Project activities, which are not implemented yet; and (iii) the measures and indicators that cannot be informed due to unavailability of data (either due to the lack of official statistics or the unwillingness of some SME representatives to provide the data in the questionnaires distributed to them). This baseline study was also developed in response to an additional request from the MI Project team to provide an update of the selected cluster compared to the information reported in the “Study on Market and Value Chain Mapping” report. This update includes (i) a brief description of the background information of the selected SME clusters; and (ii) another very brief summary of the value chains under consideration. It is expected that this update would provide useful information for the implementation of the Project after this baseline survey.


Covering a wide geographical area with a diversified set of 19 value chains of the SME clusters, there was a time constraint encountered during the field visits. Facing this time constraint, only interviews and FDGs were made by the consultant and the questionnaires were left for the respondents to complete by themselves. Some important information was unfortunately missed due to the unwillingness of the respondents to provide information on all the questions asked. However, the baseline survey represents useful information for monitoring and implementation of the Project in the future.


ABBREVIATIONS

AMS ASEAN Mekong Sub Region ASC Aquaculture Stewardship Council BAP Best Aquaculture Practice BDS Business Development Services CCI Chamber of Commerce and Industry CMTV Cambodia, Myanmar, Thailand and Vietnam DARD Department of Agriculture and Rural Development DOIT Department of Industry and Trade EWEC East-West Economic Corridor FGD Focus Group Discussion GI Geographical Indication GoJ Government of Japan Global GAP Global Good Agriculture Practices JAIF Japan-ASEAN Integration Fund MI Mekong Institute OTOP One Tambon One Product SEC Southern Economic Corridor SLV Structured Learning Visits SMEs Small and Medium- sized Enterprises Viet GAP Vietnam Good Agriculture Practices


TABLE OF CONTENTS

ACKNOWLEDGEMENT ........................................................................................................................ 3

EXECUTIVE SUMMARY ......................................................................................................................... 4

ABBREVIATIONS .................................................................................................................................. 6

TABLE OF CONTENTS ......................................................................................................................... 7

CHAPTER 1 – INTRODUCTION ............................................................................................................ 9

1.1 BACKGROUND ................................................................................................................................. 9 1.2 TARGET AREAS ................................................................................................................................ 9 1.3 OBJECTIVES OF THE PROJECT ............................................................................................................ 9 1.4 PROJECT COMPONENT AND MAIN ACTIVITIES ................................................................................... 10 1.5 SUCCESS MEASURES AND INDICATORS ............................................................................................. 11 1.6 THIS BASELINE STUDY ..................................................................................................................... 12

CHAPTER 2: SURVEY METHODS ........................................................................................................ 13

2.1 DESCRIPTION OF THE SURVEY METHODS .......................................................................................... 13 2.2 SAMPLING ..................................................................................................................................... 14 2.3 SURVEY INSTRUMENTS ..................................................................................................................... 15 2.4 DATA COLLECTION AND ANALYSIS ................................................................................................... 16 2.5 REMARKS ON LIMITATIONS .............................................................................................................. 16

CHAPTER 3: BASELINE OF THE SUCCESS MEASURES AND INDICATORS ........................................ 17

3.1 BASELINE SUCCESS MEASURES .................................................................................................. 17

3.1.1 COMPONENT A – SUCCESS MEASURES .......................................................................................... 17 3.1.2 COMPONENT B – SUCCESS MEASURES .......................................................................................... 24 3.1.3 COMPONENT C – SUCCESS MEASURES ......................................................................................... 24

3.2 BASELINE SUCCESS INDICATORS ............................................................................................... 26

3.2.1 COMPONENT A – SUCCESS INDICATORS ........................................................................................ 26 3.2.2 COMPONENT B – SUCCESS INDICATORS ........................................................................................ 28 3.2.3 COMPONENT C – SUCCESS INDICATORS........................................................................................ 28

CHAPTER 4: AN UPDATE ON THE SELECTED SME CLUSTERS ......................................................... 30

4.1 SELECTED SME CLUSTERS AND VALUE CHAINS IN CAMBODIA ................................................ 30

4.1.1 BANTEAY MEANCHEY PROVINCE, SILK AND COTTON YARN VALUE CHAIN ........................................ 30 4.1.2 BATTAMBANG PROVINCE, AND (FRESH WATER) FISH SAUCE VALUE CHAIN ........................................ 31 4.1.3 PURSAT PROVINCE AND ORANGE VALUE CHAIN ............................................................................. 32 4.1.4 KAMPONG CHHNANG PROVINCE, POTTERY AND CERAMICS VALUE CHAIN ........................................ 34 4.1.5 SVAY RIENG PROVINCE, RICE (SMACH PEDDY) VALUE CHAIN ........................................................... 35 4.1.6 KOH KONG PROVINCE, SEA WATER FISH SAUCE VALUE CHAIN ........................................................ 36 4.1.7 KAMPOT PROVINCE, NATURAL FLOWER OF SALT VALUE CHAIN ....................................................... 37 4.1.8 PREAH SIHANOUK PROVINCE, DRY SHRIMP VALUE CHAIN ................................................................ 38

4.2 SELECTED SME CLUSTER IN MYANMAR ..................................................................................... 40

4.2.1 TANINTHARYI REGION, DAWEI DISTRICT, MACKEREL (PLA TUU) VALUE CHAIN ................................... 40


4.3 SELECTED SME CLUSTERS IN THAILAND .................................................................................... 42

4.3.1 KANCHANABURI PROVINCE, BANANA CHIPS VALUE CHAIN .............................................................. 42 4.3.2 RATCHABURI PROVINCE, GREEN AROMA COCONUT VALUE CHAIN ................................................... 43 4.3.3 PRACHINBURI PROVINCE, ORGANIC RICE VALUE CHAIN .................................................................. 45 4.3.4 SA-KAEO PROVINCE, AROMATIC HERB VALUE CHAIN ..................................................................... 46 4.3.5 CHANTHABURI, FRESH DURIAN VALUE CHAIN ................................................................................ 48 4.3.6 TRAT PROVINCE, TOURISM IN KOOD ISLAND .................................................................................. 49

4.4 SELECTED SME CLUSTERS IN VIETNAM ...................................................................................... 51

4.4.1 TAY NINH PROVINCE, CUSTARD APPLE VALUE CHAIN ..................................................................... 51 4.4.2 KIEN GIANG PROVINCE, WHITE-LEG SHRIMP (LITOPENAEUS VANNAMEI) VALUE CHAIN ....................... 53 4.4.3 CAN THO CITY, PANGASIUS VALUE CHAIN ..................................................................................... 55 4.4.4 CA MAU PROVINCE, DRIED SNAKESKIN GOURAMI (PECTORALIS) VALUE CHAIN ................................. 56

CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS ................................................................ 59

5.1 CONCLUSIONS ............................................................................................................................... 59 5.2 SOME FINAL REMARKS .................................................................................................................... 60

ANNEXES ........................................................................................................................................... 63

ANNEX 1 – FIELD VISIT AGENDA ............................................................................................................ 63 ANNEX 2 – LIST OF PEOPLE MET ........................................................................................................... 66 ANNEX 3 – SAMPLES OF QUESTIONNAIRES (FOR ONE COUNTRY) .............................................................. 73


CHAPTER 1 – INTRODUCTION

1.1 Background This is the baseline survey for the project “Enhancing Competitiveness of Small and Medium- sized Enterprises in the Southern Economic Corridor (SEC) of ASEAN Mekong Sub region (AMS) for the period 2016 – 2018” supported by the Government of Japan (hereinafter referred to as the Project). 1.2 Target Areas The Project covers 19 provinces in the Southern Economic Corridor (SEC). Below are the products that are selected for each province. Cambodia

- Banteay Meanchey Province: Silk Production - Battambang Province: Fresh Water Fish Sauce - Pursat Province: Pursat Orange - Kampot Province: Natural Salt Flower Production - Svay Rieng Province: “Smach” Rice Production - Koh Kong Province: Sea Water Fish Sauce - Kampong Chhnang Province: Pottery and Ceramics - Preah Sihanouk Province: Dry Shrimp

Myanmar - Tanintharyi Region / Dawei District: Mackerel Fish (Pla Tuu) Thailand

- Kanchanaburi Province: Banana Chip - Ratchaburi Province: Aromatic Coconut - Prachinburi Province: Organic Rice - Sa-Kaeo Province: Aromatic Herb - Chanthaburi: Fresh Durian - Trat Province: Community Based Tourism (CBT) in Kood Island

Vietnam

- Tay Ninh: Custard Apple - Kien Giang: White-leg shrimp - Can Tho: Pangasius - Ca Mau: Dried Pectoralis

1.3 Objectives of the Project

The development objectives and main outcomes of the Project is summarized below:


Source: Adapted from the Program Design Document 1.4 Project Component and Main Activities The Project consists of three components as below: Component A - Capacity Development for SME clusters/networks: Conduct a modular training program on SME cluster development, export consortia formation and value chain integration assisting SME clusters in penetrating into regional and global markets. It is expected that 38 leaders of local production groups, SME associations, provincial SME promotion offices, and CCI from Cambodia, Myanmar, Thailand and Vietnam (CMTV) will participate in this capacity building program. They will then apply the newly acquired skills and tools to benefit over 1,000 SMEs on SEC. Component A comprises of three activities as follows: (A1) A five-day training including one-day structured learning visit on topics of SME cluster

development, Export consortia formation and Value Chain Integration; (A2) A three-month technical assistance provided to trained staff and production groups to

form SME Export Consortia; (A3) An investor forum organized to establish market linkages of Export consortia with

potential investors from Japan and other ASEAN countries. Component B - Trade and Investment Promotion through Public and Private Partnerships: Actively involve public and private sectors in organizing a series of trade and investment promotion events and utilization of web-based SEC profiles and SME database to attract regional and international investors. Component B consists of four activities as follows: (B1) A five-day training for 38 staff of CCI and SME Associations on business research for

field data collection and development of SEC business database; (B2) A three-month technical assistance provided to CCI/BAs in 19 provinces to collect

related information of enterprises, exporters, importers and suppliers as well as develop a business database. This activity also ensures data interchange among the targeted provinces and link the database of SEC with ones of EWEC and NSEC. It is expected that over 1,000 SMEs along SEC will register with this Biz database;

Development Objective: To enhance capacities of the agencies involved in trade investment activities to Facilitate cross border trade, and support SMEs and BDS Providers through capability development programs

Outcomes 1: SMEs in the selected border locations

increase profits and employment through participating in

clusters/networks, and integrating them into

vibrant regional/global value

Outcome 2: Inter and intra trade and investment at the project locations

increase through active involvement of both public and private sectors in organizing a series of trade and

investment promotion events and utilization of the web-based SEC

profiles and SME database to attract regional and international investors.

Outcome 3: BDS Providers, including CCI, SME Associations,

Banks, and Logistics provider, deliver business

development, trade and investment services through the enhanced business linkages information networks along the

SEC of


(B3) A five-day trade event promotion training program on topics of planning, conducting and evaluating an event for trade promotion. The training intends for 38 key staff of CCIs and SME Associations;

(B4) A three-month technical assistance provided to CCIs and Business Promotion Associations to organize trade events such as buyer-seller meet, business matching, trade fair in the two sub-corridors.

Component C - Strengthening Business Development Service (BDS) Providers: This component intends to enhance the capability of BDS providers in delivering demand-oriented business development, trade and investment services. Component C is made up of four activities as follows: (C1) A seven-day structured learning visit (SLV) to bring 38 export-oriented SME owners and

key officials of provincial governments and CCIs in SEC to successful industrial clusters and value chains integration best practices in one of the advanced ASEAN countries;

(C2) A research on SME bottlenecks, industrial development and emerging business opportunities in SEC to suggest possible measures for SEC to be more reinvigorated;

(C3) A two-day dissemination workshop to circulate research findings and recommendations;

(C4) A one-day workshop on AEC and its implications on SMEs raise awareness of provincial and border government officials and entrepreneurs on the project sites on prospect and challenges of AEC and how to get ready for the integration.

1.5 Success Measures and Indicators According to the design, the Project has sets of success measures (which are mainly qualitative in nature) and success indicators (which are quantitative) to monitor and assess the success. In particular: For Success Measures Component A Local entrepreneurs in targeted provinces forms SME clusters and integrate their products

into cross-border and regional value chains; SMEs members of promoted clusters increase and at least 50% of employees coming from

poor families (e.g. less than 2 USD/day) of the SEC (disaggregated by gender and ethnic minorities);

SMEs members of promoted clusters increase their export volumes. Component B Members of Chambers of Commerce and Industries and SME clusters on SEC are satisfy

with the SEC BIZ Database and using the database to link with regional and international sellers/buyers;

Successful data interchange between SME databases (SEC, NSEC and EWEC); Each trade and investment promotion activity attracts regional and international investors

and buyers and has active participation from them;


Trade and investment promotion events are designed and implemented in cooperation with various stakeholders including non-state-actors.

Component C BDS providers (CCI, Department of Commerce and Industry, Border authorities) applied

knowledge and skills and learning experience from SLV and AEC awareness workshop to improve their services for SMEs;

At least 3 networks of Export-oriented SMEs are formed; Research findings and recommendations are used as basis for improving services for SMEs

clusters, investors and buyers. For Success Indicators Component A At least 75% of 38 participants of SME Cluster Development training acquire solid

knowledge on topics of SME Cluster Development and Export Consortia and competent in assisting the formation of clusters and export consortia;

At least 2 clusters and export consortia formed and linked to regional value chains in each targeted province of the SEC;

At least 40% of new SME members join promoted clusters by the end of the project; At least 60 investors/buyers and SMEs participated in an investor forum. Component B At least 75% of 38 participants of Business Research training participate in Biz Database

Development; At least 1,000 SMEs registered and have their business profiles on SEC Business Database; Four trade promotion events organized (one for each twin provinces) and at least 100 SMEs,

investors and buyers participate in each event.

Component C At least 75% of BDS users (farmers/associations, SMEs/clusters, traders, investors) are

satisfied with products and services delivered by BDS providers supported by the project; Number of farmer associations and SMEs/clusters/networks that utilize services from

supported BDS providers increases not less than 25% (CCI, Border Authorities, Provincial Dept. of Commerce);

At least 75% of key target groups participated in each activity (SLV, AEC Awareness, and Research Disseminations) are fully satisfied (Average overall evaluation rate at the end of the activity should be at least 3.5, where 1 is the lowest and 5 is the highest).

1.6 This Baseline Study

This baseline study was conducted to provide an information base against which to monitor and assess activities’ progress and effectiveness during the project implementation. In particular, the baseline survey was to collect the information in order to inform the success measures and success indicators (as above) of the Project.


In addition to informing the success measures and indicators at the onset (which is a ‘conventional’ objective of a project baseline survey), during the course of implementation, the consultant was also requested by the Mekong Institute (MI) to provide an update of the selected cluster and this was an additional request into the Terms of References (ToR). This update, as described by MI, should include (i) a brief description of the background information of the selected SME clusters; and (ii) another very brief summary of the value chains under consideration. In this regard, this extra objective of the baseline survey is to provide a ‘selective’ update of the “Study on Markets and Value Chain Mapping” report, which was commissioned by MI in 2016. Given this, the structure of the report could now be outlined. The next chapter discusses the survey methods used for this baseline study. Chapter two provides a brief update of the selected SME clusters – which is an extra requirement by MI for this study. Chapter three represents the baseline success measures and indicators. Finally, conclusions and some remarks were offered at the end of the report. The field visit agenda, list of people met, and samples of the questionnaires (used for one country) are provided in the Annexes. CHAPTER 2: SURVEY METHODS 2.1 Description of the Survey Methods Desk review Desk review was conducted before the field visit. This includes the Project Design Document and other related reports, especially the “Study on Market and Value Chain Mapping” commissioned by the Project to provide an overview of the potential SME clusters and the related actors and stakeholders. In addition to these documents, other relevant information is rather limited. There are few value chains or market analysis on the products selected by the Project and this literature is useful for having a broad picture of the selected value chains while the information specific to the target provinces are quite limited. The most important outcome of this desk review is to have a list of actors and stakeholders would contribute some roles on the selected SME clusters. This list served as a useful starting point for planning the field visits. Field visits for data collection The Project spread out to a wide range of geographical areas in the SEC and value chains with diversified actors and stakeholders. In response to that context, the survey method is a combination of both qualitative and quantitative approaches. Regarding the qualitative approach, in-depth interviews based on a semi-structured set of issues are used to capture the qualitative information necessary to inform the success indicators (qualitative in nature). Such qualitative information is also useful to get a better understanding of the quantitative figures. With respect to the quantitative approach, a set of questionnaires with


close-ended questions were developed to collect numeric figures and other information that could be ranked using a variant of Likert scale. Participatory approach is adapted for data collection. This is reflected in a number of focus group discussions and the interactions between the consultant and the interviewees for in-depth interviews. It is expected that such participatory manner would contribute to the quality of information collected during the field visits. 2.2 Sampling The choice of sampling methods in practice was constrained two important factors. (i) Definitions of SMEs vary from one country in the Project to the others. (ii) The database on SMEs are relatively patchy. Given these two constraints, the population sizes of SMEs in the target countries are unknown and the list of SMEs are hardly available. Under such circumstance, a non-probabilistic convenience method is followed. The participants in the survey include SME representatives, state management agencies, BDS providers, and other non-SME and SME-related actors in the value chains such as farmers, traders, processors, exporters etc. For this baseline survey, field visits to each of the target provinces were required. In each province across the four countries, there are four groups of actors and stakeholders for data collection. Group 1 consists of between seven to ten SMEs operating in the target clusters and value

chains; Group 2 is representatives from the local Government agencies. A number of four

government representatives were selected from the agencies that have their mandates related to SMEs and the value chains under consideration;

Group 3 includes the business development services providers, including Chambers of Industry and Commerce, Enterprise Associations, Investment Promotion Agency etc. It is expected that five BDS providers are selected for data collection;

Group 4 consists of five non-SME primary actors engaging in the selected value chains such as processors, buyers, exporters.

Number of actors and stakeholders in the sample is summarized below:

Informants Methods Quantity

(per province) Total

(19 provinces) SMEs representatives Interviews 3 57 SME (It is estimated that in each province, around 7 - 10 SMEs operating in the selected value chain will be surveyed)

Questionnaire 1 7 - 10 133 - 190

Government representatives [Provincial People Committee and related line departments such as Department of Agriculture, Department of Technology and Custom Bureau]

Questionnaire 2 4 76


Informants Methods Quantity

(per province) Total

(19 provinces) BDS Providers [CCI, Department of Commerce and Industry, Border authorities, Enterprise Association, Investment Promotion Center]


Non-SME primary actors engaging in the selected value chain [processors, buyers, exporters in each value chain identified for each province]


BDS Users (farmers/associations, clusters, traders)


TOTAL 27-30 513 - 570

2.3 Survey Instruments The survey instruments employed for this baseline study includes in-depth interviews, questionnaires, and focus group discussions (FGD). For in-depth interviews and questionnaires, the structure of the content is the same. While the former is about qualitative information, the latter is for quantitative data. The basis of these in-depth interviews and questionnaires are briefly described below (for brevity, copies of these instruments are provided in the Annex). Target Main content to be collected SME representatives Background of the business; Engagement into a SME cluster or SME

business network; Experience with business information and e-commerce; Current situation of business development services, trade and investment promotion; Capacity building needs.

Government agencies Background information; Provincial statistics; Current BDS provision; current situation of SME cluster/network/export consortium in the province; Current situation of trade and investment promotion in the selected value chains of the province;

Non-state BDS providers

Background information; Provincial statistics; Current BDS provision; current situation of SME cluster/network/export consortium in the province; Current situation of trade and investment promotion in the selected value chains of the province;

Other non-SME actors in the value chains

Background information; Roles and functions in the value chains; Detailed information on the business activities related to the value chains; Opportunities and challenges for value chain development; and Others (with relevant questions for different types of actors).

In addition to in-depth interview and questionnaire instrument, FGD is another instrument used during the field visits. The focus of this FGD is to get the feedback from SME and non-SME actors in the selected value chains on the issues related to the provision of BDS, trade and investment promotion, their perceptions/experience with membership of a business (SME) network; and challenges for future development.


2.4 Data Collection and Analysis Data collection Data collection is implemented between September 24 to November 20, 2016, which started from Vietnam, Cambodia, Myanmar, and Thailand. In each province visited, some meetings with the provincial state management agencies were organized before visiting the selected geographical areas. The field visit agenda and composition of the sample were sent to the provincial focal point (usually the provincial Department of Industry and Commerce) to arrange the meetings. The data collection was based on the two methods: Face to face interview (for in-depth interview): these interviews were made to SME

representative, state management officials, BDS providers, and some non-SME actors in the selected value chains. On average, each interview lasted for one hour (without translation) or 1.5 hours (when translation is needed);

Face to face discussion (for FGD): FGDs were organized in the field (usually at one of the participant’s office or workshop). Each FGD lasted for between one to 1.5 hours, depending on whether translation into English was needed;

Sending the questionnaire to the sample: Based on the information provided by the provincial focal point, copies of the questionnaires are sent to SME representative, state management officials, BDS providers. The respondents filled in the questionnaires and sent back to the consultant directly or through the provincial focal point.

Data analysis Data analysis is made using a combination of both secondary data and data collected from the field visit. Data analysis is for the two main purposes, including (i) to inform the values of the success measures and indicators; and (ii) to provide an update as much as possible given the data availability on the selected SME clusters and the value chains under consideration. 2.5 Remarks on Limitations Before going to the details, it is important to note some limitations incurred during the process of data collection. Time constraint is a factor that needs to be noted. Having 19 SME clusters with 19 different value chains reflects a complexity of this baseline survey and collecting information for all of these clusters and value chains is very demanding. This complexity is further complicated by MI’s indication that an update of the value chains (compared to those reflected in the “Study on Market and Value Chain Mapping”) is needed in addition to the information necessary to inform the success measures and indicators – which are the main objective of the baseline survey. On average, the consultant could only spend two days per provinces and this was found to be a constraint for having sufficient time for meeting diversified actors and stakeholders. Incompleteness of the questionnaire is another constraint. The set of three questionnaires for SMEs, state management agencies, and non-state BDS providers were subject to several rounds


of revision and consultation of the MI project team and the consultants to make sure that the questionnaires are simplified and easy to understand as much as possible. However, due to the time constraint, the questionnaires could only be sent to the respondents and it was not possible for the consultant or the project team to meet and facilitate the respondents to fill in the questionnaires. As a consequence, some questions were left blank, especially for the case of Tay Ninh Province (Vietnam), and hence the information was not reported, making some indicators ‘missing’ (see Chapter 3 for more details). CHAPTER 3: BASELINE OF THE SUCCESS MEASURES AND INDICATORS This chapter presents the baseline survey findings by using the information collected to inform the success measures and indicators of the project. The first section reports the success indicators – which are qualitative measurement of success. The second section presents the success measures – which are quantitative and more closely related to specific activities under the three components of the Project. The order of presentation will follow the way these indicators and measures are presented in the Project Design Document. 3.1 Baseline Success Measures 3.1.1 Component A – Success Measures

This section reports the baseline for the success measures under component A. Before going into the details, the following should be noted: For measure of “Local entrepreneurs in targeted provinces forms SME clusters and integrate their products into cross-border and regional value chains”: a ranking system is adopted to inform this indicator. Accordingly, the scale from 1 to 5 is used where: (i) Rank 1 denotes no organizing activity within cluster; (ii) Rank 2 for partial coordination among the cluster members with no significant trade activities; (iii) Rank 3 refers to informal coordination among the cluster members with significant and/or regular trade deals; (iv) Rank 4 for cluster organization is recognized by the local authority; and (v) finally Rank 5 for cluster organization is registered. Many evidence and observations from the field visits were used to establish the baseline values using these ranks for each value chains selected; For measure of “SMEs members of promoted clusters increase and at least 50% of employees coming from poor families.” This measure is informed by the information provided by the SMEs by filling in the questionnaire. The formula used for this measure is:

𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑜𝑜𝑟 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑑 𝑏𝑦 𝑡ℎ𝑒 𝑆𝑀𝐸𝑠 𝑠𝑢𝑟𝑣𝑒𝑦𝑒𝑑

𝑇𝑜𝑡𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑡ℎ𝑒 𝑆𝑀𝐸𝑠 𝑠𝑢𝑟𝑣𝑒𝑦𝑒𝑑

Hence, this measure indicates the average number of poor employees per one SME in the cluster. Unfortunately, there is a number of cases where the SMEs did not provide their information on the number of employees in the questionnaires they sent back to the consultant through the local focal point. And for these clusters, this measure is marked as “not available – N.A” in the table below.


For measure of “SMEs members of promoted clusters increase their export volumes”: due to the variety of the value chains under consideration and lack of statistics, the figures on export are provided in different measurement units (tons, value, percentage). For some cases in Thailand, as neither statistics were available nor information was provided in the questionnaires, this measure is not available and therefore marked as “N.A” (see below).

Country, provinces, and value chains

Local entrepreneurs in targeted provinces forms SME clusters and integrate their

products into cross-border and regional value chains

SMEs members of promoted clusters

increase and at least 50% of

employees coming from poor families

SMEs members of promoted

clusters increase their

export volumes

Level of coordination Justification

Cambodia Banteay Meanchey Province, Silk and Cotton Yarn

1 No coordination observed (80 households producing, 3 local traders buying from farmers without contracts)

N.A 5% of total production

Battambang Province, Fresh water) Fish Sauce

2 Certain level of coordination across 7 fish sauce manufacturers and traders; Plan to establish a Fish Sauce Association

N.A None

Pursat Province, Orange

1 Small number of 115 orange farmers, with 10 local traders operate in the value chain with no considerable coordination

N.A None

Kampong Chhnang Province, Pottery and Ceramics

1 Small number of ceramics farmers, trading with few local traders but no significant level of coordination observed

N.A None

Svay Rieng Province, Rice (Smach peddy)

2 Production remains limited within around 134ha by 492 farmers and few local traders. No significant coordination observed yet but the product has been selected for many national and provincial trade fairs

3 167 tons

Koh Kong Province, Sea Water Fish Sauce

1 Only one family-based enterprise - Koh Kong Fish Sauce Manufacture – employs 6 workers to sell in the local market

None










export volumes


Kampot Province, Natural Flower of Salt

3 More than 4500 ha for production by 185 groups of salt farmers, 20 local traders, and Kep-Kampot Salt Producers Community have exercised certain level of coordination and significant trading volume. Support from the provincial authorities was observed.

6 None

Preah Sihanouk Province, Dry Shrimp

2 There has been some cooperation between the Dry Shrimp Processing Association and the dry shrimp producers, which is a good starting point for the development of a SME cluster.

1.7 8 tons

Myanmar Tanintharyi Region, Dawei District, Mackerel (Pla Tuu):

3 Around 880 fishermen with 220 fish boats have captured a significant volume of Pla Tuu (6-8 thousand tons per year) for two Burmese companies and one Thai investor. Though no formal SME cluster for Pla Tuu established yet, there have been SME clusters in other products and having a Pla Tuu cluster is a matter of timing.

0 US$ 31.7

million

Thailand Kanchanaburi Province, Banana Chip

3 Certain level of coordination is in place: (i) cooperation between Siam Banana Company and 15 processors; (ii) trading relationship between large number of farmers (on the areas of 16

1.5 N.A










export volumes


thousand ha) and around 50 banana chip processors. But there is not yet SME cluster registered to and recognized by the local authorities

Ratchaburi Province, Green Aroma Coconut:

4 There is no formal SME cluster registered yet. But the current cooperation between the Ratchaburi Organic Company and coconut growers (some of them are contracting farmers) is an important starting background for a vibrant SME cluster. There are a number of traders, local and Chinese, and large number of farmers with significant areas of production of 44 thousand hectares. The potential for an SME cluster is promising.

N.A N.A

Prachinburi Province, Organic Rice:

2 A certain level of coordination is observed: (i) the Organic Rice Community Enterprise collects rice from some rice growers; (ii) Institute of Certified Agriculture. Production System has certified different variety of organic rice. But the area of production remains quite limited, organic rice is a choice of less than 10 percent of farmers.

N.A N.A

Sa-Kaeo Province, Herb processed

4 There is no SME cluster registered yet but high level of readiness and

N.A 50% of total production










export volumes


product coordination is in place. In particular (i) Sa-Kaeo Aroma Herb Community Enterprise is a ‘lead’ company and it bought from most vegetable farmers; (ii) significant level of export (more than 50% of total output); (iii) commitment of the authorities to develop this sector (e.g. the product was selected in One Tambon One Product program); (iv) active involvement of other stakeholders such as the Sa-Kaeo Community College offers technical training, the BAAC bank offers low interest rates for farmers.

Chanthaburi province, Fresh Durian

4 No cluster registered yet but the level of readiness is high. There are many actors, including Rich Filed Fresh Fruit Company is the main exporter of durian. The company buys from 90 local traders. Makham Cooperative also informed their ambitious plan of buying from 1100 members. Other stakeholders are interested in supporting the sector e.g. Cooperative Promotion Office offers technical training for farmers, few banks provide loans at low interest rates.

N.A 146

thousand tons

Trat Province, 3 There is a vibrant tourism N.A 50% of










export volumes


Tourism in Kood Island

sector in the areas with at least 35 resorts, 15 bungalows, 15 home-stay facilities, 50 bars/pubs etc. to serve a growing number of tourists (currently around 150 thousands). So the potential for development of a SME cluster is promising. However, the authorities have expressed their strong support for tourism development in another island, but Koop Island – the one selected as the target of the Project

tourists are foreigner

Vietnam Tay Ninh, Custard Apple

3 No formal SME cluster is registered yet but the potential is promising: (i) Thanh Tan Custard Apple Cooperative could be a key actor in the cluster; (ii) more than 1000 hhs growing custard apples in more than 1000 ha; (iii) support from the local authorities (e.g. to registered GI; trade fairs to promote agriculture products).

0 280 tons

Kien Giang, White-leg shrimp

3 No formal SME cluster registered yet but there is a considerable level of cooperation across different actors and stakeholders. (i) farmers raise white-leg shrimp in more than 3800ha with inputs from CP group and other input suppliers; (ii) Trung Son Food J.S.

6 N.A










export volumes


Company is active in the value chain in the selected target areas; (iii) Club of White-leg shrimp has been set up with members are farmers; (iv) the provincial authorities identified this product as a core of its agriculture sector.

Can Tho, Pangasius

4+ A Pangasius Cluster has been set up in six provinces in the Mekong Delta of which Can Tho is one province member. Vietnam Pangasius Association is located in Can Tho and very active in supporting enterprises in pangasius exporting. The challenge is to have the SMEs in the target areas of the Project (O Mon district) to participate in the current Pangasius Cluster.

0 11 thousand

tons

Ca Mau, Dried Pectoralis

3 No SME Cluster is registered yet but the potential is promising: (i) there are around 800 HH producers and 70-80 local processors; (ii) the product is identified by the provincial authority as one of its specialty and core agriculture product; (iii) strong support from the authorities including GI registration, trade promotion.

0.6 None


3.1.2 Component B – Success Measures

This component aims to promote trade and investment though PPPs through (i) organizing a series of trade and investment promotion events; and (ii) utilization of web-based SEC profiles and SME database to attract regional and international investors. As these measures are related to the designed activities to be implemented during the course of the project and hence, there is no information available at the baseline to inform these measures. Instead, this section presents some related observation on the success measures below. Success measures Remarks

Members of Chambers of Commerce and Industries and SME clusters on SEC are satisfied with the SEC BIZ Database and using the database to link with regional and international sellers/buyers.

The BIZ Database does not exist yet. The data available from this baseline survey on SMEs (though some of the questionnaires were not completed by the respondents) could be used as materials for this BIZ Database; Statistics on the selected sector, as discussed earlier, are rather limited but there are some sources that might be useful for the development of the BIZ Database, for instance the database maintained by Vietnam Pangasius Association for the Pangasius SME cluster in Can Tho.

Successful data interchange between SME databases (SEC, NSEC and EWEC)

Data interchange will be made only after having BIZ Database ready. The management of different databases under MI should be synchronized.

Each trade and investment promotion activity attracts regional and international investors and buyers and has active participation from them.

These activities are not yet implemented. When implementing these activities, it is important that the numbers and the list of the regional and international investors be made for (i) monitoring; and (ii) updating or enriching the BIZ Database.

Trade and investment promotion events are designed and implemented in cooperation with various stakeholders, including non-state-actors.

These events are not yet implemented. There have been initiatives, especially the one supported by the local government for trade and investment promotion in the selected value chains. However, most of these activities are locally focused. An additional focus on cross-border trade (CBT) should also be considered. This raises a requirement for M&E to monitor the numbers and types of stakeholders that would cooperate with the project when organizing these trade and investment events.

3.1.3 Component C – Success Measures This section reports the baseline for the success measures under component C. Before going into the details, the following should be noted:


For measure of “BDS providers (CCI, Department of Commerce and Industry, Border authorities) applied knowledge and skills and learning experience from SLV and AEC awareness workshop to improve their services for SMEs.” This measure is about the outcome of the SLV and AEC workshop in terms of improvements of services for SMEs, and therefore, no information is available before the implementation to inform the baseline value. However, to inform the current capacity level of the BDS providers, a self-assessment question was included in the questionnaire. Accordingly, the BDS providers surveyed were asked to self-evaluate their capacity building needs for delivering a number of BDS services, using (i) Score 1: High need for capacity building; (ii) Score 2: Need for capacity building; (iii) Score 3: Moderate need for capacity building; and (iv) Score 4: No need for capacity building. For measure of “At least 3 networks of Export-oriented SMEs are formed) and C3 (Research findings and recommendations are used as basis for improving services for SMEs clusters, investors and buyers.” These measures are about the outcomes of some activities under Component 2 and therefore no information is available at this stage to inform the baseline indicators. Instead, some remarks are provided for these measures (as below). BDS providers (CCI, Department of Commerce and Industry, Border authorities) applied knowledge and skills and learning experience from SLV and AEC awareness workshop to improve their services for SMEs.

Cambodia State

agencies Non-state agencies

Business Research 3,6 3,9 Investment promotion 3,5 3,8 Domestic trade fair 3,2 3,8 International trade fair 3,3 3,7 Export promotion 3,3 3,7 Regional export – oriented consultancy 3,3 3,8 Global export-oriented consultancy 3,6 3,9 Penetration into Southern Economic Corridor

3,7 4,0

Capturing the business opportunities from AEC

3,7 3,9

Myanmar State



4,0 4,0


4,0 4,0

Thailand State


Business Research 3,5 3,2 Investment promotion 3,2 3,0


Domestic trade fair 3,1 2,8 International trade fair 3,1 3,4 Export promotion 3,2 3,4 Regional export – oriented consultancy 3,1 3,2 Global export-oriented consultancy 3,3 3,2 Penetration into Southern Economic Corridor

3,3 3,4


3,2 3,0

Vietnam State



4,0 3,6


4,0 3,6

At least 3 networks of Export-oriented SMEs are formed

No export-oriented networks are established yet by the Project. The Pangasius Cluster in Can Tho is an example of an export-oriented SME cluster network (note that Pangasius is mainly exported). The Project should consider this as a useful starting point for establishing export-oriented network.

SMEs research findings and recommendations are used as basis for improving services for SME clusters, investors and buyers.

No information is yet available for informing this measure. This raises a question for the M&E in terms of how to collect information on whether the BDS providers use and findings and recommendations from the studies implemented by the project in improving their services for the SME clusters, investors, and buyers.

3.2 Baseline Success Indicators For the set of success indicators, most of these are either the output or outcome of the Project activities. At the onset of the project, as not all activities are not yet implemented, the value for the success indicators are either zero or not available. Instead of informing these values, this sub-section will provide some remarks for M&E work during the course of implementation. 3.2.1 Component A – Success Indicators


Success Indicators Remarks At least 75% of participants of 38 participant of SME Cluster Development training acquire solid knowledge on topics of SME Cluster Development and Export Consortia and competent in assisting the formation of clusters and export consortia.

There should be (i) a training assessment form to measure the level of knowledge acquired after the training; and (ii) a follow-up questionnaire (or qualitative survey) to assess the competence of the trainees in assisting the formation of clusters and export consortia.

At least 2 clusters and export consortia formed and linked to regional value chains in each targeted province of the SEC.

The field visit indicated that there are a few existing initiatives that could be the basis for this activity. For instance, the Pangasius Cluster in Can Tho, the cooperation between Siam Banana Company and 15 processors in Kanchanaburi, or the cooperation between Ratchaburi Organic Company and coconut growers etc. These could serve as the basis for further support to form the cluster and export consortia as well as to link them to regional value chains. It is also noted that the task of formation of cluster and export consortia that could be then linked to regional value chains are probably more difficult for the selected clusters in Cambodia and Myanmar given the level of integration across key actors in these areas is considerably less than the observed level in Vietnam and Thailand.

At least 40% of new SME members join promoted clusters by the end of the project

This indicator is difficult to measure and it is proposed that the indicator should be modified to “The number of the SME members join promoted clusters by the end of the project”. At the baseline, the number of SMEs in each clusters are below (only taking into account SMEs, processors, or group of farmers) Cambodia No SMEs or processors observed in any of the selected areas

for cluster formation Myanmar No SMEs or processors observed in any of the selected areas

for cluster formation Thailand Kanchanaburi Province, Banana Chip: 1 company, 15

processor groups Ratchaburi Province, Green Aroma Coconut: 1 company Prachinburi Province, Organic Rice: 1 company Sa-Kaeo Province, Herb processed product: 1 company Chanthaburi Province, Fresh Durian: 1 Cooperative (with

1100 members) Trat Province, Tourism in Kood Island: 65 resorts, home-stay

service providers and Bungalows owners.


Success Indicators Remarks Vietnam Tay Ninh Province, Custard Apple: Thanh Tan Custard Apple

Cooperative Kien Giang Province, White-leg Shrimp: Truong Son

company, 1 Club of White-leg Shrimp growers Can Tho City, Pangasius: 4-5 companies (headquartered in

Can Tho city but having their farms in the target areas), 01 farmer group.

Ca Mau Province, Dried Skaeshin Gourami: 0 At least 60 investors/buyers and SMEs participated in an investor forum

The investor forum is not yet established. This raises a requirement for M&E work to monitor the participation in the investor forum that will be established.

3.2.2 Component B – Success Indicators

Success Indicators Remarks At least 75% of Business Research training participates in Biz Database Development.

This raises a requirement for M&E work to monitor the trainees’ participation in the BIZ Database Development.

At least 1,000 SMEs registered and have their business profiles on SEC Business Database

As the BIZ Database is not yet established, the data interchange with other SME databases, including SEC, is not taken place yet. Once the above activities completed, it is important for M&E work to monitor the number of SMEs who are registered and having their profiles completed in the SEC database.

Four trade promotion events organized (one for each twin provinces) and at least 100 SMEs, investors and buyers participate in each event

These trade promotion events are not yet implemented. This raises a requirement for M&E work to monitor the participation of these events in the future.

38 key staff of CCIs and SME Associations are trained

The training is not yet implemented. Information will be available from the training report.

3.2.3 Component C – Success Indicators

In order to inform the success indicators in the Component, information provided by the SMEs in the questionnaire is used. In particular: For indicator of “At least 75% of BDS users (farmers/associations, SMEs/ clusters, traders,

investors) are satisfied with products and services delivered by BDS providers supported by


the project”, there was a question about whether the SMEs used any of the four BDS services (as in the table below) and whether they found these activities useful.

For indicator of “Number of associations and SMEs/clusters/networks that utilize services from supported BDS providers increases not less than 25%”, the information from the above question will also be used to inform the number of SMEs that have used some BDS services.

Success indicators Baseline Values and Remarks

At least 75% of BDS users (farmers/associations, SMEs/ clusters, traders, investors) are satisfied with products and services delivered by BDS providers supported by the project.

Event Vietnam Thailand Cambodia Myanmar Investment promotion event 2,6 2,5 3,2 No service Domestic trade fair 2,4 3,0 3,9 No service International trade fair 2,4 2,4 3,4 No service Export promotion event 2,8 2,8 3,6 No service SME database launching 1,0 1,0 3,3 No service

[Note: 1 denotes for “no effective at all” and 5 for “very effective”; ‘no service’ was recorded in the case of Myanmar and this indicates that no BDS services were found available by the SME surveyed]

38 export-oriented SME owners and key officials of provincial governments and CCIs in SEC visit to successful industrial clusters and value chains integration best practices in one of the advanced ASEAN countries.

These visits are not yet implemented. This raises a requirement for M&E work to monitor the participation in these visits. In addition, it is suggested that an assessment form should be distributed to the visit participants to assess the level of knowledge and experience acquired from the visits.

Number of associations and SMEs/clusters/networks that utilize services from supported BDS providers increases not less than 25%

Services Vietnam Thailand Cambodia Myanmar Investment promotion event 5 11 26 No service Domestic trade fair 8 12 29 No service International trade fair 5 8 16 No service Export promotion event 4 12 16 No service SME database launching 0 0 0 No service


At least 75% of key target groups participated in each activity (SLV, AEC Awareness, and Research Disseminations) are fully satisfied

These activities are not implemented yet. This raises a requirement for M&E work in monitoring the level of satisfaction of these SLV, AEC Awareness, and Research Disseminations. A Likert rank should be used to evaluate the level of satisfaction by the participants.

CHAPTER 4: AN UPDATE ON THE SELECTED SME CLUSTERS

The value added of this Chapter in comparison with the “Study on Markets and Value Chain Mapping” report is the twofold. (i) Based on the consultation with the local stakeholders, the focus areas of the selected value chains were identified to particular districts/communes (rather than at the provincial level). (ii) The value chain analysis was conducted based on the information collected from the selected areas and other relevant actors/stakeholders. Compared to the above report, the value chain analysis in this Chapter is of more specific information, which is potentially useful to identify the priorities for value chain developments. To make this analysis most useful while brevity is kept, each of the selected SME clusters (and associated value chains) will be analyzed in two pages, including one on the update on the SME clusters and the other is on the value chain analysis (due to data availability, however, the subsections on basis statistics and policies to support the SMEs are not always available across all the 19 value chains). 4.1 Selected SME Clusters and Value Chains in Cambodia 4.1.1 Banteay Meanchey Province, Silk and Cotton Yarn Value Chain Selected geographical region: Phnom Srok District is selected for SME cluster development. In the past Silk production of the Phnom Srok District of Banteay Meanchy is very famous however not many people engage in this livelihood currently. Basic statistics about silk production in the selected district Total labor in silk production : 80 workers (100% is female) Number of local traders : 3 Total production volume : 800 pieces/month Total export volume (5% of the total production) : 40 pieces/month (480 pieces/year) Total export value (in thousand USD) : 6,000


Value chain map (in Phnom Srok District) Cost structure of a silk producer

4.1.2 Battambang Province, and (Fresh water) Fish Sauce Value Chain Selected SME actor: Ponler Preah Atit Fish Sauce located in Romcheck 4 Village, Ratanak District. Battambang City is selected as the key player in SME cluster development process. Policies to support SMEs: Currently, the Department of Industry and Handicrafts plans to form the Association of Battambang fish sauce. However there has been no progression. The value chain map is fairly simple (see below)

5% exported

30% to Phnom Penh 70% to Siem Reap

Silk producing (5 months)

Women in Poy Char Village (Poy Char Commune) grow mulberry, raise worm.

Processing (18 days) Coloring – antong - weaving

Trading

No technical training provided they learn from ancestor

Cambodia women business federation (CWBF) provide 10 looms

- Dept of Commerce support the silk producer to participate in trade fairs;

- Ministry of commerce, AAC help marketing, own marketing

- AAC (Artisans Association of Cambodia) helps exporting

95% sold domestically

80 women in Poy Char Village, Trapeang Thma Village do weaving (they work in group). They do not apply any standards for exporting

Indirect cost (71.3%) (US$ 7894.10/year) Direct cost (28.7%) (US$ 3170/year)

Equipment and other (67.7%)

Land (28.5%) Building (10.7%)

Leak (Germany) (55.2%)

Leak (nature) (15.8%)

Trade fair (25.2%)

Marketing online (3.8%)

Labor cost (N.A)


Cost structure (of Fish Sauce Manufacture in a production cycle)

Inputs provision Processing (6-7 months) Trading

Fish are collected from the fresh water, Tonle Sap, the biggest fresh water river in Cambodia

Ministry of Labor provide financial package to the fishermen group (2009)

- Department of Industry (laboratory), Ministry of Planning, RACHA provides Iron (Fe) supplement

- Fisheries administration provided training on fishering processing, fish sauce production… etc. in 2009

- Department of Commerce facilitates to get the registration, license

- Department of Environment helps check the cleanliness

- Firefight frequently check (6 months)

- Ministry of Industry and Handicrafts check (yearly)

VSO provides training on marketing;

100% is sold domestically: Siem reap (Bang Khun), Battambang (central makets), Pursat (Town), Banteay Meanchey, Preah Vihear, Udor Meanchey, Kampong Thom

In total there are 7 manufactures producing fish sauce in the province, all are family based and in small scale.

Other inputs (Prohok sauce, salt) are available locally

Indirect cost (61.0%) (US$ 21658/year) Direct cost (39.0%) (US$

13845/year)

Tools

(43.1%)

Building

(6.9%)

Equipment

(30.7%)

Production Land (10.2%)

kiln (firewo

od) (4.6%)

Tools (24.1%)

Raw materia

ls (11.4%)

Ion, sugar,

oil, salts (18.0%)

Office supply and depression cost (10.1%)

Firewood,

electricity, water (7.4%)

Tax and

interest

(3.2%)

Other (4.5%

)

Labor force

(24.4%)

Other (1.3%

)


4.1.3 Pursat Province and Orange Value Chain Selected geographical region: Phnom Kravanh District is selected for Orange SME Cluster Development. Angkrong village where the total land used for orange production is 486 ha will participate in the cluster. Policies to support the SMEs: There is no clear strategy in promoting the products. However there have been some activities implemented by related stakeholders, including Department of Commerce is working to register GI for Pursat orange. Basic statistics about orange production in province Main districts Kravanh, Veal Veaeng, Bakan and Pursat Total area (ha) N.A Total households growing orange trees N.A Number of local traders 10 Total production volume N.A Total export volume 0

Value chain map

BDS Providers: - Currently, no support from Agriculture Department on

seedlings, using fertilizers or chemicals for orange tree, etc.

- 1996-2003, Agrisud helped to provide training and knowledge for orange growers on how to grow orange and seedling and provided information on price.

BDS Providers: - Currently Department of

commerce supports orange promotion via domestic trade fair.

- Province is working to register GI for Pursat orange

Farmers produce seedlings themselves

More than 115 househods are growing 131,298 origins trees (486 ha). They are facing some challenges:

- Producers only follow from each other with no proper training or coaching on how to grow orange tree from the related state agencies;

- No linkages with traders/exporters

Inputs provision Investment

(4 years)

Harvesting (in Sept – Dec and Mar – Apr)

Trading

Chemicals and fertilizers are provided by local shops (easy to access)

5 local traders collect orange fruits at farm and forward to Phnom Penh and Battambang Provinces

Production (one cycle per year)


Cost structure (per ha)

4.1.4 Kampong Chhnang Province, Pottery and Ceramics Value Chain Selected geographical region: 2 communes (Chrey Bak an Srae Thmei) are selected for SMEs cluster development. Policies to support the SMEs: The provincial authority confirm the need to promote the pottery production, however, there is no clear strategic direction or plan that has been developed for this sector. A recent guideline on the establishment of committee to promote one village one product also including pottery production. Yet there is no any activity done so far. Basic statistics about pottery production in Kampong Chhnang province The main production area Banh Chhkoul Village, Chrey Bak Commune,

Rolea B'ier District Number of households engaged in production 155 households Number of local traders 3 Female labor working in the sector 70% Total production volume 0 (sold to foreign tourists only)

Value chain map (in Chrey Bak and Srae Thmei)

Indirect cost (20.8%) (US$ 813/year) Direct cost (77.4%) (US$ 2780/year)

Seedling (4.9%)

Machines and Water system (36.6%)

Cultivated Land (61.5%)

Fertilizer (16.2%)

Oil (10.1%) Labor (71.9%)

Chemicals (1.8%)

Families sell to 3 traders and 200 local distributors

All needed inputs (soil, labor, land) for pottery are available locally. No challenge is identified at this stage.

Input provisions Production/Processing (20 days)

Get the soil – dry – put in the water – mix - curving – burn – ceramic

Trading

BDS Providers: - No supports, however,

the authority also not prohibit the farmers from digging the soil for the pottery purposes

BDS Providers: - Thai OTOP, provide

technical adviser for burning (in the past)

- No support to connect the processors with exporters

BDS Providers: Ministry of commerce, through department of Industry and Handicrafts, Department of Commerce: (Buy Cambodian product campaign), provide store for trade exhibition, Department of industry, provide financial supports for trade fair/promotion.

The Pottery and Ceramic Center Direct get order from Siem Reap, Phnom Penh

5 families and Kampong Chhnang Pottery and Ceramic Center (9 members) are the major processors. They are facing challenges: - Some products cannot meet demand - Lacking technique to make the mold - Lack of technology to produce, own, soil, ink, color

(standardization) - No linkages to the sellers/retailers in other provinces; - No linkages to exporters


Cost structure

4.1.5 Svay Rieng Province, Rice (Smach Peddy) Value Chain Selected geographic region: Smach peddy gets its good quality only when being grown in Svay Rieng. Not many farmers are interested in producing smach peddy any longer as production cycle is too long (6 months). Kampong Rou District as one of three largest rice producing districts in the province is selected. Policy to support SMEs: There has not been strategic plan to promote Smach peddy production in the province or specific policies to support SMEs in this sector. However, Smach peddy is always selected to be presented at many national trade fairs as a province’s special product. Basic statistics about Smach Peddy production in Kampong Rou District Current total land in Kampong Rou District 4400 ha (smach peddy 134 ha) Smach peddy farmers 492 farmers Local collector 3 Khmer middlemen Productivity (smach peddy) 1800kg/ha/production cycle Total export volume (70%) 167,126 kg (to Vietnam) Total export value USD 30,082

Value chain map

Input Provisions Production (6

months) Processing (18

days) Trading

70% is exported to Vietnam (03 Khmer middle men buy from the villagers and sell to Vietnamese traders;

30% is sold in domestic market.

BDS Providers: Department of Commerce provide opportunity for the producers to show case their product nationally.

BDS Providers: Department of Agriculture provides technical assistance to smach peddy growers; Loans are provided by many financial institutions (Prasak; AMK, ACLEDA, Amrit, Hatha Kasikor, Kredit, Famers Association)

BDS Providers: Department of Agriculture support in seed dissemination; promoting small scale irrigation system and facilitates seed production

492 farmers grow smach peddy rice on 132.64 ha. The farmers use 40 – 50% of total yield; They are facing some difficulties as:

- Low turnover; - Long production cycle; - Poor quality variety

Seeds: poor quality farmers produce seeds themselves; Fertilizer imported from Vietnam and Japan; Irrigation system: rain-fed; Family labour and sometime helping from neighbors

Indirect cost (88.6%) (US$ 19,720/year)

Direct cost (11.4%) (US$ 2,530/year)

Equipment (67.0%)

Producing material (2.5%)

Land (15.2%)

Center (15.2%)

Gas (49.8%)

Transportation (11.9%)

Firewood (22.1%)

Ink and color (7.9%)

Labour (5.9%)

Packaging

(2.0%)

Water and Electricity

(0.4%)


Cost structure

4.1.6 Koh Kong Province, Sea Water Fish Sauce Value Chain Selected geographical areas: Koh Kong Fish Sauce Manufacture is the only fish sauce producer in the province. Began in 2012 as a family business, they started to have a wholesale office in Phnom Penh recently and continue to expand their business. Koh Kong Fish Sauce Manufacture employs 6 workers and processes 156 tons of raw materials (sea fish) only. Over the last four years of operation (2012 – 2016), Koh Kong Fish Sauce Manufacture has produced 108,000 liters of fish sauce. Policy to support SMEs: Currently, the Provincial Authority has no specific policies/support to promote this product. Value chain map is fairly simple (see below).

Cost structure

Inputs provision Processing Trading

Raw materials (sea fish) imported from Vietnam

Equipment (such as barrels) bought from

Vietnam

Koh Kong Fish Sauce Manufacture is the only processor themselves and facing some difficulties as: - Raw materials basically import from Vietnam

hence increase cost; - Have no cooperation with the suppliers yet for

the production (pluctuated price or lack of raw materials)

No BDS Provider at this stage

BDS Provider: Ministries of Agriculture, Commerce and Industry supports Koh Kong Fish Sauce Manufacture to participate in domestic meeting and exhibition

Koh Kong Fish Sauce Manufacture does marketing and distributing themselves. 100% sold domestically. Recently, the competition from fish sauce imported from Vietnam and Thailand is very high.


Equipment

(91.0%) Building (6.5%)

Storage Room (2.5%)

Salt (1.6%)

Raw materials (75.0%)

Electricity (0.9%)

Labor cost (22.5%)

Seed (N.A)


Rice Field (5.6%) Equipment and

other (94.4%)

Labor cost (100%)


4.1.7 Kampot Province, Natural Flower of Salt Value Chain Selected geographical region: This type of salt is a type of sea salt obtained by harvesting the young crystals that form on the surface of salt evaporation ponds. The harvesting takes place in summer when the sun is the strongest with wind. Flower of salt has a higher mineral content than table salts. Due to its relative scarcity and its labor-intensive production, flower of salt is one of the expensive salts. One community working on salt production/packaging is operating at the border of two provinces of Kampot and Kep. This location (red-cycled in the map) is selected for Flower of Salt SME Cluster Development. Policies to support the SMEs: The Kampot Department of Industry and Handicraft has one office to help looking after and promoting salt production in the province. However, there are not many activities. In 2013, there was an attempt to produce and export Cambodian salt by Asia Salt (Cambodia) Co., Ltd- a local subsidiary of a joint venture between South Korean Company EEE Korea and InfraCo Asia Development Pte. Ltd. This action was financed by the British, Swiss and Australian governments. However, the project failed after 2 years later. Basic statistics about natural salt in Kampot Province and its neighboring province (Kep): Total land area for producing salts (ha) 4578 ha in two province Kampot and Kep

Provinces Number of households 185 groups of salt producers exist in Kep and

Kampot Number of local processors Kep-Kampot Salt Producers Community Number of local traders 20 Total labor working in the sector 4500 workers (60% is female) Total salt production volume 144.570 tons (2016) Total flower of salt volume 6 tons Total export volume (in tons) 0


Value chain map (natural salt and flower of salt)

Cost structure

4.1.8 Preah Sihanouk Province, Dry Shrimp Value Chain Selected geographical region: Tonob rolok; Stueng Hav; Prey nob districts of the province, where dry shrimp is produced the most. Policies to support the SMEs: No policies have been introduced to support dry shrimp production in the province.

Indirect cost (11.3%) (US$ 48.21/year) Direct cost (88.7%) (US$ 376.79/year)

Outlet-Inlet preparation

(46.3%)

Dike Preparation

(9.3%)

Crust loam removal (18.5%)

Scatter Sand (9.3%)

Salt Pan Compact

(9.3%)

Labor Wage (47.4%)

Materials (13.0%)

Technician Salary

(28.4%)

Incentive and

Drinking Water (4.0%)

Fuel (3.6%)

Miscellaneous Cost

(3.6%)

Mud Removal (7.4%)

190 salt producer groups cultivate around 4,500 hectares of salt production land. - The low quality of the salt which

eventually reduces the local market (competition from Vietnam, Thailand)

- There has been surplus; the producers could not get money from the community.

A group of 7 members is collecting flower of salt. The technique is not easy hence not many farmers are engaging in collecting flower of salt.

Production (5 months) Collection/Processing/Packaging (early Feb

to May) Trading

BDS Providers: - Community helps providing incentive

support (capital) with no interest - Kampot Department of Industry and

Handicraft has one office of Salt production to help looking after and promoting salt production in the province. However, there is no much activities

BDS Providers: - Unicef provides Ioan and study visit

in Sri Lanka - Department of Industry and

Department of Standard (Ministry of Industry) supports for laboratory and standardization testing

BDS Providers: - Government (Ministry of

Commerce search export), no VAT apply (2015-2018)

- No SBD Provider is supporting the Salt Community and farmers to export the flower of salt

100% sold domestically Market for flower of salt is going to merge; (20 local traders)

Phnom Penh (Long Huy, Che Chu, Long Chay)

Kep-Kampot Salt Producers Community facing the difficulties: - The community produces more than

170,000 tons per year and Cambodian local market consumes around 100,000 tons of salt a year. They need support to penetrate into new market.

- There is no better packaging process available. Only flower salt production has a better packaging design.

- Lacking fund/loans from the financial institutions at small interest rate.

- Processing/packaging flow of salt remains innovative idea.

Other provinces (Battambang, Siemreap, Pursat)


Basic statistics about dry shrimp in Preah Sihanouk province: Main areas of production 3 areas (Tonob rolok; Stueng Hav; Prey nob) Number of households Around 25 families and one group with 11

member (Dry Shrimp Processing Association) Number of local traders 7 Total female labor working in the sector 60% Total production volume 26,5 tons Total export volume 30% of the total output

Value chain map Cost structure

30% exported to Vietnam (80%) and Thailand (20%) – through unofficial trader

7 local traders are operating

Several fishermen (120-150) sell shrimps to processors in daily basis with no standards

Fishing Collectors/Processors: Clean – steam – Dry (fire and sunlight) – grading – packaging

Trading

No BDS support available

BDS Providers: - BDS Providers: Ministries (Agirculture, Commerce,

and Industry), Unido, Unitac, JICA – software: meeting, workshop, trade fair…

- Association: Dissemination: standards as GMP, GHP, S5, investment partnership, testing the quality (Pastor Center, Cambodia standard institution, fisheries)

BDS Providers: - Dry shrimp Association: Marketing,

trading information, , trade fair - No outstanding supports provided

by BDSs both from public and private besides call for meeting and sometimes invite for trade fairs

70% sold domestically (retail and wholesale)

25 households of which 11 are members of Dry Shrimp Processing Association are collect and process shrimps from fishermen. No standard of production - Small scale and based on family business - The group separately produce in their home and

sometime they rent private places to dry the shrimp

- Weak linkages between processors and fishermen, local traders/exporters

Indirect cost (32.5%) (US$ 30640/year) Direct cost (67.5%) (US$ 63700/year)

Production

area (44.9%) Equipment

(37.2%) Others (18%)

Raw

materials (66.5%)

Tools (3.9%)

Water, Electricity, coal, salt (17.9%)

Steam service (4.7%)

Labor cost

(5.2%)

Equipment (1.7%)


4.2 Selected SME cluster in Myanmar 4.2.1 Tanintharyi Region, Dawei District, Mackerel (Pla Tuu) Value Chain Selected geographical region: Tha Bouk Seik Village in Launglon Township (Dawei District) is selected for development of the Marketel (Pla Tuu) SME Cluster. Policies to support the SMEs: Pla Tuu is subject for reservation policies hence the volume of fishing and selling are

controlled and recorded by Department of Fisheries. However this Department can monitor the volume of Pla Tuu that are transported and sold in Yangon Capital only.

The recent enforceable policy of the Government that prohibits all kinds of timber exploitation (including for fishing boat building) causes difficulties to the fishermen who wish to build a new fishing boat or upgrade the boat to a bigger one. Still, another Governmental policy supports fishermen to build a new boat and buy new fishing nets if there is a natural disaster destroying their boat and nets.

In Dawei District, United Nations Industrial Development Organization (UNIDO) has been supporting the stakeholders in establishing Cluster for various sectors (such as Cable Stone Production Industries Cluster, Agricultural Industries – Rubber, Betel - Cluster, Rice Mill Industries Cluster, Paddy Trading Cluster) but no SME Cluster in fishery sector has been set up. The state agencies, Dawei District Fishery Federation and SME associations have been trained on by UNIDO and to some extent had sound understanding of cluster development.

Basic statistics about Mackerel (Pla Tuu) in Tha Bouk Seik Village: Number of fishermen 880 (on average, 1 boat deploys 4 fishermen) Number of fishing boats 220 (all are small boats) Total yield of fish (yearly) 13200 tons (60 tons/boat * 220 boats) Total yield of Platu (yearly) 6600 – 7920 tons (50-60% of the total yield of fish) Number of processors and exporters 2 local companies

1 company owned by Thai investor.


Value chain map:

Cost Structure

Inputs provision Fishing (less than a month) Collection/Trading (2-3 days)

Boats are not built anymore as timber production has been illegal since 2014; All boats are old ones. The technology to build steel fishing boat has not been introduced. There are 2-3 boat builders nearby who use timber for boat building illegally.

Around 880 men are working on 220 fishing boats; Of which 220 are boat owners. Around 1000 female workers engage in activities such as fish classifying, on-sand fish selling.

All required inputs such as fishing nets, plastics boxes, fuel, engines and ice are available locally.

BSD Providers:

- No BSD provider who supports the fishermen to overcome the difficulties of shortage of wooden boats which resulted from the recent policy of the Government that allows the timber using no longer. Department of Fisheries is in charge of granting license for fishing, providing working registration for fishermen and supporting them in conflict solving.

- Dawei District Fishery Federation supports ice factories in investment.

BSD Providers:

- Department of Fisheries provides market information to fishermen in forms of awareness raising events, flyers dissemination.

- Department of Consumer Affairs is grating import-exporting license to Pla Tuu exporters.

- No trade fair has been organized for Pla Tuu market development in Dawei District; Fishermen are not supported to attend any inter-province or international trade fair;

- Department of SMEs Development support SMEs in general in market promotion.

- 220 small boats (area of fishing: less than 10 miles from land; less than 30 feet long; less than 25 horse power engine);

- 220 are boat owners and 660 fishermen are hired to work on boats; One fisherman are paid around 10% of the total revenue of a boat;

- The boat owners and hired fishermen do not know about any quality standards. They use ice and salt to keep Pla Tuu fresh in traditional way. Therefore they cannot sell their Pla Tuu directly to the Processing Company owned by Thai investors who are requiring high quality;

- Total yield of Platu (fished by 220 boats) per year is around 13,200 tons.

30% of the total yield is sold to small local collectors (1,000 women)

30% - 50% of the total yield is sold to 20 collectors who have 2 trucks

The remaining is sold to a large local collector who hires 20 male and 10 female workers

25% is sold to the Thai Processing Company

75% is sold to domestic market (mainly to Yangon)

100% is sold to domestic market (mainly to Yangon)

100% is sold to locals markets (mainly to the neighboring communes,

BSD Providers:

- No BDS provider supports to introduce Pla Tuu freezing technology to fishermen and processors.

- No BDS provider support the fishermen in applying quality standard to Pla Tuu


Net

(47.9%)

Anchor and Tool

boxes (1.0%)

Engine (31.9%)

Boat (19.2%)

Bank loan

interest (6.6%)

Electricity, fuel and salt (3.0%)

Daily food

(16.6%)

Repair cost

(7.9%)

Water & worship (0.8%)

Tools (1.6%)

Licensing and tax (0.1%)

Labor cost (63.3%)


4.3 Selected SME Clusters in Thailand 4.3.1 Kanchanaburi Province, Banana Chips Value Chain Selected geographical region: Saiyok, Thong Pha Phum and Phanom Thuan Districts are selected for banana chip SME cluster development. There are 12 local banana chip processors operating and providing inputs for Siam Banana Company that are selected as a key players in the cluster. Siam Banana Company has built good relationship with those local processors for long time and they support the processors in many ways such as offering banana frying oil at cheap price, and providing training and processing technical mentoring. Policies to support the SMEs: Banana chip is identified as the OTOP (One Tambon One Product) Product hence the producers/processors are beneficiaries of the OTOP Policy. OTOP Policy has been initiated in 2001 aiming at increasing the capacity of the community network quality for integrated poverty reduction and economic development. The local processors have been supported to invest into processing tools such as gas-consuming cooks. The Community Enterprise such as Siam Banana Company is supported to participate in OTOP Exhibition or international/domestic trade fairs fairly often. Basic statistics in Sayyok, Thong Pha Phum, Phanom Thuan Districts: Total banana production areas No official statistics (estimated 16.000ha,

1.6ha per households) Number of banana growers Around 1000 households Number of banana chip processors 50 Total volume of banana chip produced 810,000 kg (yearly) Total value of export (million USD) No official statistics


Value chain map

Cost structure

4.3.2 Ratchaburi Province, Green Aroma Coconut Value Chain

Selected geographical region: Bang Phae, Muang Ratchaburi, Wat Pleng and Damnoen Districts are selected. A Community Enterprise (Ratchburi Organics Co. Ltd) that has been operating in green aroma coconut sector can play a key role in promoting the SMEs cluster. The Company is located in Bang Phae and has established relationship with local advanced farmers growing

50% is sold to Siam Company for flavoring and packaging

Growing Processing Flavoring and

packaging Trading

Siam Banana Company (hiring 30 labors, mainly female workers);

90% is sold to CP who has the retailing channel nation-wide and 7/11 convenient shops.

10% is exported to China market (at the same price as in domestic market).

2 other enterprises have been newly

operated

1 small processor located in Say Yok district; 10 in Thong Pha Phum and 1 in Phanom Thuan District

35 small processors located in Sai Yok selling banana chips to tourists who visit the Sai Yok Water Field

705 households are growing. Some challenges as: - Low productivity

in draught season; - Low yield seedling

50% is sold to end consumers in the province

Unknown number of households that are providing banana for the newly established enterprises

Domestic market mainly

BDS Providers: - Cooperative Promotion Office and

Community Development Office provide training to farmers, support finance to processors for investment in frying tools;

- Company (Siam Banana ) provides training and quality control services to their linked processors;

BDS Providers: - Siam Banana Company is supported to participate in OTOP

Exhibition or international/domestic trade fairs; - Banana chips is selected as a core product of the province; - The SMEs (Siam Banana and others enterprises) are facing the

shortage of raw materials for their processing/flavoring but no policy to enlarge the production area is introduced by the provincial authority.


Small truck (94.2%)

Oil, sugar, salt, butter (28.7%)

Bag (5.3%)

Tools (3.1%) Storage room (2.7%)

Gas and fuel (31.7%)

Labor (34.4%)


coconuts. The Company owner has 400 rai to grow coconut himself and get Organic certification. The Company plans to get more coconut grower members in 2017. Policies to support the SMEs: Aroma green coconut is identified as the OTOP (One Tambon One Product) Product hence the producers and packaging houses/ companies are the beneficiaries of the OTOP Policy. Basic statistics about Green Coconut sector: Total coconut production areas 44,000ha (harvesting area: 36,000ha) Total production volume of the province (in fruit)

(Estimated) 250 million fruits

Districts that have largest coconut production Bang Phae, Mueang Rachaburi, Wat Pleng and Damnoen Districts

Productivity (fruit/rai) 70,000 fruits/ha/year Total value of export (million USD) No official statistics

Value chain map (in the selected districts)

Growing (harvesting time: every 20 days)

Packaging Trading/Exporting

Ratchaburi Organics Co. Ltd collects and packages more than 3.86 million fruits in 2015

90% sold to traders who export to international markets (such as Fresh Connect)

10% sold to fruit juice manufacturers

5 – 10 Chinese collectors (come and collect in New Year time, summer time and full moon time); They buy green coconuts at 20 – 30% higher price than the local packaging houses

offers to farmers

15 contracted farmers (members of the Ratchaburi Organics Co, Ltd) grow coconuts on 3,000ha

BDS Providers: - The Ratchaburi Organics Co. Ltd provides

loans for their contracted farmers to buy fertilizer;

- Support from Provincial Government on canal construction (irrigation system for coconut farm) and develop new variety of coconuts

BDS Providers: - Ratchaburi Organics Co. Ltd was supported to invest in their

packaging house 4 years ago when they established the Community Enterprise;

- Organic Certifying agencies. - The world market is promising, hence Chamber of Commerce

and the Federation of Thai Industries (FTI) are supporting their members in take advance of market opportunity

15 non-contracted farmers grow coconuts on around 1,600ha

Farmers grow coconuts in around more than 1,600ha. No contract with local packaging houses or Chinese collectors

Western Europe & Australia

(traditional importers)

Eastern Europe (new market)

10 local collectors/packaging houses (They are facing competition from Chinese collectors)

Domestic market (mainly)

China market


Cost Structure

4.3.3 Prachinburi Province, Organic Rice Value Chain Selected geographical region: Kabinburi district is selected for organic rice SME cluster. The Organic Rice Community Enterprise is located in this district and can play as the key actor in the cluster. The Enterprise has been well-known for their products and is planning to enlarge the production areas to other provinces as they are facing a shortage of inputs (rice). Still, the Enterprise has not been succeeded in exporting their products abroad. There are rooms for the SME cluster to enhance the competitiveness of the Enterprise and its connected rice farmers. Policies to support the SMEs: Organic Rice is identified as the OTOP (One Tambon One Product) Product hence the producers/processors are the beneficiaries of the OTOP Policy. The Organic Rice Community Enterprise has been supported to invest into their processing system and housing; and to participate in OTOP Exhibition or domestic trade fairs. Basic statistics about organic rice sector: Total land used for rice production 84,000ha rice, of which 10% is organic rice Type of organic rice Institute of Certified Agri. Production System

certified seeds: Rice-berry rice (purple color), milky rice (green color), sinlek rice (white, yellow color).

Productivity of organic rice 1.560kg/ha/season Total yield of organic rice 12,000 tons (per season) Total value of export (million USD) The organic rice is not exported.


Rent the Land

(91.1%)

Labor cost

(0.3%) Equipment (8.0%)

Baby tree

(0.9%)

Organic fertilizers (83.7%)

Labor (16.3%)


Value chain map (Kabinburi district)

Cost structure

4.3.4 Sa-Kaeo Province, Aromatic Herb Value Chain Geographical region selected: Muang, Wang Nam Yen, Wang Sombun, Wattana Nakhon, Ta Phraya and Khlong Hat District are selected for herb SME cluster promotion. Sa-Kaeo Aroma Herb Community Enterprise is the key player in promoting SME Cluster in herb sector. This Enterprise buys herb as raw materials from all 6 districts. Policies to support to the SMEs: The Sa-Kaeo Provincial Authority has identified herb a core product and introduced many

policies to support herb production. For example, Program “Knowledge based OTOP”

Growing (4.5 months) Processing Trading

Organic Rice Community Enterprise is located in Kabinburi district) collect the rice from 13 farmers without contract. The Enterprise mills the rice and produce different type of final products which are considered of very good quality. The products are one of the most famous OTOP Product in Thailand.

50% is sold to local hospitals

30% is sold at trade events

12 farmers are growing organic rice on 200 rai of land and 1 farmer is growing on 300 rai. (50 rai are cultivated twice per year, 450 rai one per year) The time of production is rather long: 4.5 months and the yield is fairly low however the price is relatively good. The farmers do seedling

BDS Providers: - Cooperative Promotion Office and

Community Development Office provide technical training to farmers;

- Agriculture Office has helped the farmers with producing advanced variety of rice.

BDS Providers: - Organic Rice Community Enterprise is supported to participate in

OTOP Exhibition and international/domestic trade fairs (in Bangkok, China)

- Organic Rice is promoted as a core OTOP product of the Province; - There have not been policies to support the Organic Rice Community

Enterprise to export organic rice to China and other market although the demand is high.

The Enterprise engages in distribution of their final products. They are unable to export

20 % is sold their own shop

Direct cost (72.8%) (US$ 943.57/season) Indirect cost (27.2%) (US$ 351.69/season)

Land and preparation

(42.2%) Equipment

(57.8%)

Fertilizers (22.8%)

Chemical and Organic

fertilizers (19.3%)

Bank loan interest (5.9%)

Harvesting truck (rent) (1.8%)

Labor (48.7%)

Seed (1.9%)


(One Tambon One Product) run by Sa-Kaeo Community College helps Sa-Kaeo Aroma Herb Community Enterprise to make body soap from herb.

The herb processors are supported to have free boots at OTOP Exhibition in Sa-Kaeo Province and other Provinces or international trade fairs in Malaysia, Cambodia and Vietnam.

The Sa-Kaeo Community College and Non-Formal and Informal Education Office are jointly supporting the farmers in growing and drying herb.

The Bank for Agriculture and Agriculture Cooperatives (BAAC) offers loans at low interest rate to farmers, collectors and processor in herb sector.

Basic statistics about herb production in six districts: Total households growing herbs and having linkage with Sa-Kaeo Aroma Herb Community Enterprise

Muang District: 20 Wang Nam Yen District: 150 Wang Sombun District: 150 Wattana Nakhon District: 1 Ta Phraya District: 50 Khlong Hat District: 20 Total: 391 (on 1,600ha)

Total households growing herbs and having linkage to a large local collector located in Sub Ma Kood Sub-district

Total: 250 (on 1,300ha)

Main herbs Cassumunar ginger, Turmeric, Pandan Leaves, Rosella, Butterfly pea; tamarind leaves;

Average production area per household 0.45ha Productivity 12 - 25 tons/ha Total yield No official statistics. Total export volume Estimated 50% exported, mainly to India,

Indonesia


Value chain map

Cost Structure

4.3.5 Chanthaburi, Fresh Durian Value Chain Selected geographical region: Makham District is selected for Durian SME cluster development and Makham Cooperative is selected as the key player in the cluster. Currently, Makham Cooperative has 1980 members and 60% of their member (1,100) is growing durian.

Growing Collection Processing Trading / Exporting

391 households are growing herbs on 1000 rai (estimated total yield: 4000 tons/year).

A large local collector

10 processors (they are smaller than Sa-Kaeo Aroma Herb Community Enterprise) producing cosmetics, health care products and consumer goods)

250 households are growing herbs on 800 rai (estimated total yield: 3200 tons/year)

Sa-Kaeo Aroma Herb Community Enterprise (producing cosmetics, massage oil and balm, hair care products, consumer goods as soaps; The enterprise is hiring 7 female and 1 male workers on full time basis

20%

50Traders

India market

Indonesia 30%

30%

Local hospitals

20%

30%

50%

70% sold to tourists, visitors

10% sold to shops in Bangkok

10% made by order (spa shops)

Domestic shops

BDS Providers:

- Processors are supported to participate in OTOP Exhibition by Community Development Office, Chamber of Commerce and many international trade fairs (in Indonesia, Malaysia, Vietnam

- Travel agencies bring tourists to processors’ shops

- Sa-Kaeo Aroma Herb Community Enterprise products are selected as province’s product

BDS Providers:

- Sa-Kaeo Community College and Non-Formal and Informal Education Office provide trainings and techniques transferring to farmers (Knowledge based OTOP)

- Bank for Agriculture and Agriculture Cooperative (BAAC) provides loans to SMEs (producers, collectors, and processors).

Indirect cost (76.2%) (US$ 4,891.75/year) Direct cost (23.8%) (US$ 1,524.01/year)

Seeds (71.5%)

Tools (0.8%) Diesel (0.1%)

Equipment (19.9%)

Land cost

(8.6%)

Organic fertilizers (13.2%)

Labors cost (85.9%)


Basic statistics about Durian in Chanthaburi Province: Total durian plantation area 30,500ha (26,800ha harvesting) Main production areas Tha Mai (10,940ha); Makham (3,940ha);

Kichiakut (5,600ha); Khlung (6,580ha) Total yield of the province 242,686 tons Total export volume (60% of total yield) 145,611 tons Total value of export (estimated) USD 325,844,140

Value chain map (in Makham District)

4.3.6 Trat Province, Tourism in Kood Island Policies to support the SMEs: In general, the Provincial Agencies are supporting Chang Island to develop tourism more than Kood Island. There have not been particular policies for SMEs in Kood Island except one program that offers groups of households including those who work in tourism sector in Kood Island to upgrade their business facilities.

Inputs provision

Growing (investing in 3 years and yearly harvesting in 5 – 6

decades)

Collection Trading/Exporting

Seedling are provided locally

1600 – 2000 households are growing durian on 24,583 rai; they are all capable and experienced; They are facing no challenges in growing durian; selling at good price (at 80 – 90THB/kg for exporting and 50-60 THB/kg for domestic market); Durian farms are well managed and high yielding; watering system is constructed on all farm.

Other inputs as fertilizers and pesticide are provided locally

Makham Cooperative plans to start to collect durian from 1100 members in 2017.

Currently 100% of durian yield is sold to 90 local collectors (of which 37 collectors are based in the center of the Province)

40% is sold to domestic market

60% is exported (mainly to China) (the main player is Rich Filed Fresh Fruit Company)

Labors are available at 300 THB per working day.

BDS Providers: - Soil Research Office (Research Institute) provides technical

training to farmers - Cooperative Promotion Office provides technical training to

farmers; - Bank of Agriculture and Agriculture Cooperatives (BAAC)

provides loans to farmers - Makham Cooperative has started to connect the farmers with

various exporters.

BDS Providers: - Cooperative Promotion Office support the

farmers/Cooperatives to participate in many different kinds of fruit trade fair (internationally and domestically);

- Agriculture Office and others support to find new market for exporting to reduce the dependence on China Market.


Value chain map

Cost Structure

Massage services (6 – 7 shops)

100% owned by local people

Restaurants/pubs/bars (approximately 50)

80% owned by local people

20% owned by foreigners (who marry

with Thai)

Diving services (5 companies are operating)

Resorts (35) 10% owned by

foreigners (but the investment accounts for 80%) and 90% owned by

Thai

Bungalows (15) 100% owned by local

people

Home-stay services (15) 100% owned by local people [an owner can register only 4 room

maximum]

Tourists 140,000 –

150,000/years (50-70% is

foreigners, mostly the European,

Australian, Russian, Scandinavian and 30 – 50% is Thai)

Travel agents (app. 40, located in the mainland of Trat Province)

BDS Providers: Standards of food security and health care are guided by state agencies, in particular Community Development Department (CDD), and supporting sea-food processing; Provincial Office of Industry provides guidance on product standards (such as dry shrimp).

BDS Providers: - Office of Business Registration provides guidance on home-stay

standards to home-stay service providers; - The home-stay service providers are supported to visit other islands

to learn about the business model; - There is a policy to support group of at least five home-stay service

providers if they can make qualified proposal (budget is less than 100,000 THB for a group);

- BDS Providers are more active in Chang Island than in Koop Island.

Indirect cost (46.2%) (US$ 14,252.68/year)

Direct cost (53.8%) (US$ 16.587,41/year)

Land and house (67.7%)

Garden construction (7.9%)

Furniture (17.3%) Car (8.5%) Towers, bed

sheets... (0.6%)

Labor cost (52.6.5%)

Consumable

(10.1%)

Electricity and water

(30.4%)

Gasoline (4%)

Travel to

mainland (2%)

Taxation (0.8%)


4.4 Selected SME Clusters in Vietnam

4.4.1 Tay Ninh Province, Custard Apple Value Chain

Selected geographical region: Thanh Tan and Tan Binh communes in Tay Ninh City are selected for development of Custard SME cluster (see the below map). Thanh Tan and Tan Binh communes are the two amongst five largest custard apple production communes of Tay Ninh Province. Moreover, a Custard Apple Cooperative has been operating in Thanh Tan commune for long and contributed largely to building the image of Tay Ninh Custard Apple. This Cooperative can be a key player in the SME Cluster. Policies to support the SMEs: Custard apple is considered one of the major fruit crops as provided by the Decree 44/2012/QĐ-UBND on Provincial Agriculture Development Planning for the period 2015 – 2020. However, there have not been many particular policies to support SMEs who engage in custard apple production and trading except a support for application of Geographical Indication (GI) for Custard Apple in 2012. Basic statistics about Custard Apple: Custard apple plantation area Over 1000ha Average yearly revenue per ha USD 11,200 Average production area per household 0.5 – 1 ha Total yield of the commune 14,000 tons per year Number of custard apple farmers 1000 – 1500 HHs Total export volume (in tons) 1-2% of total yield


Value chain map: Cost structure

Farmers produce seedlings themselves and the Cooperative produce and sell seedling to farmers

Producers included 1000 households (HHs) in Thanh Tan commune – Tay Ninh city (Total Custard Apple area: 1000 ha); amongst them 18 HHs are members of the Thanh Tan Custard Apple Cooperative and grow Custard Apples on 28 ha; 150 HHs sign contract of linkage with the Cooperative; These 150 HHs grow Custard Apples on 100ha. All HHs are capable and experienced in growing Custard Apples. They are able to apply pollination techniques to have two harvesting times per year. The challenges they are facing is that they have no post-harvest storage techniques so that they have to sell all the harvested fruits within two – three days regardless the price.

Inputs provision Investment

(3 years)

Harvesting (2-3 days)

Trading

Chemicals and fertilizers are provided by local shops, cooperative.

BDS Providers: - Bio Technology Center (located in

HCMC) guides farmer to produce seedling;

- Thanh Tan Custard Apple Cooperative provides credits to their contract farmers (in forms selling inputs with deferred payment.

BDS Providers: - No BDS providers that are

supporting HHs with postharvest storage techniques;

- Some scientists are supporting the Thanh Tan Custard Apple Cooperative to produce Custard Apple Wine.

BDS Providers: the DoST (Science and Technology helps with GI registers); Trade promotion is provided by DoIT (for domestic market).

Labor force is available in the town/commune (no lack of labor even in high harvesting time).

Large wholesalers in Ca Mau city (some are enterprise) [90% of total wholesale]

50% are retailed to the end-consumers (some of them send abroad relatives; no direct export]

Large wholesalers in Can Tho (5%) and Ho Chi Minh City (5%)

Production (5 – 6 months; two

production cycles per year)

50% are sold to wholesalers

Harvesting (27.1%)

Indirect cost (35.2%) (US$ 2,481.87/year) Direct cost (64.8%) (US$ 4,577.53/year)

Land acquisi

tion (36.2%

)

Fertiliser/protection

chemical pumping machines

Land prepara

tion (42.3%)

Watering piping and well/pond

drilling (11.5%)

Water pumper (3.7%)

Micro organic and chemical

fertilizer (39.8%)

Electricity for

watering (3.6%)

Plant protection chemicals (20.2%)

Caring (72.9%)

Labors for plant

care (36.4%)

Electricity (low voltage) (1.2%)

Labor for harvesting

and packaging

(34.2%)

Nilon Packaging and box (65.8%)

Seedling (05%)


4.4.2 Kien Giang Province, White-leg Shrimp (Litopenaeus vannamei) Value Chain

Selected geographical region: Kien Luong District is selected for SME cluster development since the production area in Kien Luong is the largest. A Club of Commercial Shrimp Farming that has been established and operated by 30 white leg shrimp farm owners can act as a key player in the SME Cluster. Trung Son Food J.S. Company invested in white leg shrimp farming in Kien Luong district can involve in SME cluster promotion. There are three big purchasing agents of the processing companies operating in Kien Luong District however they have set no close linkages with farmers who claim having no bargaining power with those agents. Current policies to support the SMEs: Raising white-leg shrimp used to be prohibited in Kien Giang in the past. Recently, white-leg

shrimp is considered a core product of the province. Kien Giang Province has recently introduced policies to promote and control the white-leg

shrimp breeding to ensure the quality inputs for production. The Agriculture and Fishery Extension Center introduced models of white-leg shrimp

models in Hon Dat district in 2014 and two advanced farmers participated in the models. The outcomes of the models have been disseminated to larger audience (shrimp farmers) in other districts.

Basic statistics of white-leg shrimp: Total production area (ha) 786 ha: advanced extensive culture system by companies

and some households 2,453 ha: advanced extensive culture system by households. 500 ha: white-leg raised in the rice farm by households

Productivity (tons/ha) Intensive culture system: 20 – 25 tons/ha/year Advanced extensive culture system: 1.8 – 2 tons/ha/year

The average turnover per ha Advanced extensive culture system: USD 6,200 – 10,600 per ha/year Intensive culture system: USD 7,860 – 10,660 per ha/year.


Value chain map (in Duong Hoa commune, Kien Luong district)

Cost structure (one production cycle in 6 months)

Breeding: CP Joint Stock Company, Provincial Seedling and Breeding Center, Fishery Institute III are the major providers (via certified small distributors located in communes)

Shrimp feeds, vitamins, supplements to feeds, antibiotic and other inputs are supplied by local shops (easy to access)

Inputs provision Shrimp farming (6 months – 2 production cycles per

year)

Collection Processing Trading/Exporting

Trung Son Company (a large processor) has own shrimp farm. Intensive cultural system: 130 households (average area: 3 ha per HH); Advanced extensive cultural system: 1600 HHs A Club of commercial shrimp farming with 30 members is operating. The club members are those who raise shrimps intensively. HHs are facing some challenges: - Climate change caused

shrimp Disease; they are using chemicals/Antibiotic without being sufficiently trained.

- Price fluctuation - Technical knowledge on

intensive shrimp farming is limited.

Loans: not easy to access for the farmers who do not have assets as collateral for the bank loans.

70 – 80% of the total yield is sold to 7 processing companies located in Tac Cau Industrial Zone (80 km far from Kien Luong district). Those companies authorized the purchasing agents

20 – 30% is sold to other processing companies located in An Giang and other provinces.

100% of the commune’s yield are sold to small/individual collectors located in Duong Hoa commune and others. Farmers have litle bargaining power

100% of the commune’s yield are sold to 3 larger purchasing agents who are based in Kien Luong District. They test the quality parameter s and decide the buying price.

BDS Providers: Limited number of loans providers USD [On average, farmers need 1,500 – 2,000 for investment to 1 ha of extensive culture system and USD 30,000 for investment to 1 ha of intensive culture system.

BDS Providers: - Fishery Office checks the water parameters of the shrimp farms

when there is disease; - Continuous Education Centers and Vocational Training School

provide training to young farmers on shrimp farming; - VietGAP certification agency delivers training and certifies

VietGAP for 5 households. - DARD provides training on shrimp farming model to limited

number (5) of households; - No technical training are provided by processing companies.

Asia (Korea and Japan)

Europe (Germany, Italy, England)

Australia

America (smallest market)

China (biggest market)

Labors are cheap and available locally

Indirect cost (24.4%%) (US$ 7352.81/year) Direct cost (75.6%) (US$ 22826.97/year)

Equipment (95.1%) Land (1.2%)

Food

(41.1%) Enzyme (11.8%)

Harvest cost

(0.7%)

Chemistry

(2.7%) Seeds (8.3%)

Electricity

(11.8%) Labors (23.6%)

VietGAP cost (3.7%)


4.4.3 Can Tho City, Pangasius Value Chain Selected geographical region: Thoi An Commune in O Mon District is selected for SME cluster development. Thoi Ai Pangasius Famer Group can play an activie role in SME cluster. Below are the maps of Can Tho Province, Omon District and Thoi An Commune. Current policies to support the SMEs: The Department of Agriculture and Rural Development (DARD) is reviewing a Project

“Development of Infrastructure for pangasius production for exporting in Tan Loc commune (Thot Not District) in an area of 100 ha” and will support farmer households to apply Viet GAP in pangasius production. Currently, pangasius production area in Can Tho city that is certified with Viet GAP, BAP, Global GAP, ASC etc. is 218,18 ha. However all the certified production area is owned by large processing companies and the certification cost remain unaffordable to households.

Can Tho City Authority have invested in an advanced Laboratory which is currently managed by Fishery Office under DARD. The Laboratory provides the service of testing the water parameters of pangasius producing ponds to the farmers for free. This service is very helpful to the farmers.

Basic statistics about Pangasius Production in Thoi An Commune: Pangasius production area 30 – 40 ha (changing yearly) Average yearly revenue per ha USD 230,960 - 269,453 Average production area per household 0.5 – 1.2 ha Total yield of the commune (tons) 8,661 – 11,548 Number of pangasius farmer 55 – 60 HHs Total export volume (in tons) 100%


Value chain map (in Thoi An commune) Cost structure

4.4.4 Ca Mau Province, Dried Snakeskin Gourami (Pectoralis) Value Chain

5% of the total yield of the commune is sold to Nam Phuong and Song Hau Processing Companies (located in Can Tho City) and Thuan An Processing Company (located in An Giang Province)

Processing companies provide Chemicals (Chlorine, KMnO4, BKC, TCCA, Formol, Iodine), vitamins; supplements to feeds, antibiotic to their contracted farmers. Non-contracted buy chemicals at local shops.

Processing Companies and cooperatives located in Can Tho City and others located in Dong Thap, An Giang provinces are growing pangasius themselves in Thoi An (and other provinces), ensuring more than 85% the raw materials required for processing and exporting. The majority of pangasius farming area in the Can Tho city is linked to enterprises, or has become frequent supplier for enterprises. Enterprises invest in feed, medicine, instruct farmers on farming techniques and farmers are ensured profit of about 1,000 dong/kg. Other inputs (boats) and labor are

available locally.

Fingerlings: Can Tho Fingerling Center I and more than 40 local households produce and sell figerlings to farmers; Processing Companies are providing fingerlings themselves to their owned producing ponds.

Producers include 01 group (18 members) that has 4.4 ha pangasius farm and 30 – 40 households who have around 30 – 35 ha pangasius farm. They, together with other farmers in other communes provide less than15% raw materials to processing companies. All HHs are capable and experienced in growing pangasius, however they are facing difficulties:

- Some HHs use Amoxicillin, Ampicillin, Enrofloxacin, Florfenicol, Oxytetracycline, Tetracycline which are recommended for very limited use;

- Farm/Pond water pollution causes diseases for pangasius;

- 1ha of pangasius farming requires investment of billions VND, hence when the price of pangasius is lower than production cost and the market is unstable, smallholding farmer households cannot hold out, and are forced to suspend production, quitting the business, or become hired labor on their own pond, or are outsourced to produce fishes for enterprise.

Inputs provision Production (7 – 8 months) Harvesting

((2-3 days)

Processing

Manufactured feeds are provided by the Processing Companies to the contracted farm owners or by local shops to the non-contracted farm owners. Local shops sell feeds produced by Cargill, Green Feed, Proconco, Anova, Uni-President, etc. The biggest feed manufacturer is Viet Thang.

BDS Providers:

- Can Tho University trained farmers on fingerling producing.

- Can Tho Fingerling Center I provides technical assistance

BDS Providers:

- Processing Companies provide technical assistance to the contracted farm owners; control chemicals and antibiotic use [Farmer groups and individual farmers produces pangasius for processing and exporting companies that provide feed by a 1.6 coefficient, and after harvest, the company will collect all fishes with a fixed cost for fingerling, medicine, labour, pond hire].

- Can Tho Fishery Office checks the farm environment every day and keep the farm owners informed and guides them to apply appropriate technical measures.

- Department of Agriculture and Rural Development support household to apply VietGAP.

BDS Providers:

- Vietnam Pangasius Association (VPA) is operating a website which supports 53 large processing companies in Mekong Delta to connect with importers.

- Certificates of Origin is provided by Nafiqad, Can Tho DOIT.

- Customs services (training, consultancy) is provided by Can Tho Post Authority.

90% of the total yield of the commune is sold to Sao Mai Processing Company (located in An Giang Province) and CP Processing Company (located in Can Tho City) (Contracting with farmers)

Exporting

America

Japan

Euro

China

Australia

Domestic market


Office and warehouse

(55.7%)

Equipment (27.7%)

Land (1.7%)

Labor (3.3%)

Clean lake (0.9%)

Seeds (3.2%)

Investment (15.0%)

Medicine (1.4%)

Feeds (91.1%)


Selected geographical region: Tran Van Thoi town (Tran Van Thoi District), Ca Mau Province is selected for SME Cluster development. The Geographical Indication (GI) of U Minh Thuong Pectoralis has been granted and Tran Van Thoi town is one of benefiting communes. Current policies to support the SMEs: Although Dried Pectoralis has been identified as a core agro-product of the Province, the

Provincial Authority claims having no resource to promote this product. What they have been doing to support SME actors so far includes: Department of Science

and Technology has helped registering the GI Certificate for U Minh Dried Pectoralis and Fishery Extension Services and Farmer’s Union have provided technical assistance to households in producing fingerling which helps saving an amount of USD 1.100/pond (2500m2) spent on fingerling.

Basic statistics about Dried Pectorlis in Tran Van Thoi District: Total Pectoralis area and households 216 ha (800 HHs) Average yearly revenue per HH (VND) USD7,500 The average yearly income per household (VND) USD720 Number of local processors (approximately) 70-80 Total labor working in the sector 861 working in 5 full months [and

58,088 days for seasonal labors ] Total female labor working in the sector 430 (50%) Total production volume 2525.6 tons Total export volume No export


Value chain map (in Tran Van Thoi town):

Farmers self-providing fingerling

All producers are households (156 HHs in Tran Van Thoi town); no cooperative or producer groups are operating; The producing area per households is small and the harvesting time is different (to ensure the processing not overloaded). The current production cannot capture the market opportunities which require large production quantities and homogenous standards.

Processors are local collector as well. In Tran Van Thoi town, there are about 20 processors/collectors; only one processor/collector is also the producer. The Processors are deploying the heating system without technical guidance. In rainy day, the risk of having low quality of final product is high. The quality of dried products is confirmed not meeting exporting requirements; hence a big processor said he refused an export contract of 10 tons dried products.

Inputs provision

Producing ((9-10 months)

Processing (4 days)

Trading

Chemicals and medicine are provided by local chemical shops (easy to access)

BDS Providers: Provincial/district Fishery Extension Center/Stations; Farmer Union; Commune Agricultural officials and experienced farmers provide technical coaching to farmers. BDS Providers is provided prominently to the stage of inputs (E.g. fingerling; using of medicine or chemicals for pond treatment).

BDS Providers: NOT AVAILABLE. There are challenges faced in processing such as: provide heating system; Services of HACCP certification needed but the farmers cannot access

BDS Providers: At trading stage, the DoST (Science and Technology helps with GI registers); Trade promotion is provided by DoIT (for domestic market)

Labor force is available in the town/commune (no lack of labor in high harvesting time)

50% whole sale

Large wholesalers in Ca Mau city (some are enterprise) [90% of total wholesale]

50% retailing to the end-consumers (some of them send abroad relatives; no direct export]

Large wholesalers in Can Tho Province (5%) and Ho Chi Minh City (5%)


Cost structure CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS

This final chapter provides some conclusions from the baseline survey. In addition, though having recommendations for the Project is not a primary of a baseline survey, the final section of this chapter does offer some remarks that are based on the observation and consultation with different stakeholders during the course of this baseline study. 5.1 Conclusions This baseline was made to mainly to inform the success measures and indicators of the Project in order to formulate a background for M&E work (and also to provide useful information for the

Producing (77.7%) (US$ 16,893.48/year)

Processing (14.0%) (US$

3,045.43/year)

Land

(30.2%)

Packing & Storage and selling (8.3%)

(US$

Indirect cost (23.8%) (US$ 5,177.53/year)

Direct cost (12.5%)

(US$ 2,717.98/y

Indirect cost (1.5%)

(US$ 327/year)

Indirect cost (6.6%)

(US$ 1,436.53/y

Direct cost (53.9%) (US$ 11,715.96/year)

Direct cost (1.7%) (US$

364/year)

Investment (4.3%)

Clean

lake (60.8

%)

Equipment (4.5%)

Medicine for

producing fingerling

(0.3%)

Foods

(19.2%)

Labors care (59.9%)

Electricity

(1.0%)

Labors (91.8%)

Net for harvesting

(8.2%)

Lime and

medicine

(20.0%)

Harvest (32.8%)

Caring (62.7%)

Equipme

nt (72.5

%)

Land (27.5

%)

Labors (71.6%)

Knife, ice and

salt (28.4%)

Equipment

(100%)

Packaging

(63.9%)

Packing

workers

(6.7%)

Electricity

(29.4%)


project implementation). The baseline survey was also made to provide an update, to the extent of data availability, of the value chains related to the selected SME clusters for interventions. Using information available from various survey methods and desk review, this Report provides a snapshot of the Project’s target SME clusters at the onset. The baseline results could be broadly classified into three different groups: (i) the measures and indicators that could be ‘fully’ informed using the data collected; (ii) the measures and indicators that cannot be informed at the baseline as these measures or indicators are the output or outcomes of the Project activities, which are not implemented yet; and (iii) the measures and indicators that cannot be informed due to unavailability of data (either due to the lack of official statistics or the unwillingness of some SME representatives to provide the data in the questionnaires distributed to them). Regarding the update of the value chains related to the selected SME clusters, the report has provided a brief narrative of the value chains, including some basic statistics, value chain maps, and cost structures of the value chains. This update might be useful in two aspects. First, it provides a snapshot of these value chains before the interventions of the Project are made available. This could then serve as a background for monitoring the changes facilitated by the Project. Second, and more importantly, this provides a background for the Project to draw areas of priorities during the implementation. When informing the values of the success measures and indicators, some remarks are made for M&E work. Particularly, there are requirements for M&E work that need to be taken when implementing many activities. One issue that would need attention is to monitor the participation of different stakeholders (in addition to the main beneficiaries) in the Project activities. In most cases, M&E forms need to be developed and ready when the activities are under implementation. It is also important to note a limitation of this survey. Covering wide geographical areas with a diversified set of 19 value chains of the SME clusters, there was a time constraint for data collection. As a result, only interviews and FDGs were made by the consultant and the questionnaires were left for the respondents to complete by themselves. Some important information was unfortunately missed due to the unwillingness of the respondents to provide information on all the questions asked. Hence, a few measures or indicators were left missing in Chapter 3 of this report. One solution for this issue is for the end-line survey to track for these missing information. Given the project life cycle is two years and hence it would probably not difficult for the respondents to track for this missing information. 5.2 Some Final Remarks

#1: On the Achievability of some Success Measures and Indicators Some success measures and indicators might not be achievable if the additional actions are not taken properly and adequate budget is not allocated for following-up. Specifically: Component A:


The success criterion “SME members of promoted clusters increase their export volumes” might not be achievable within two years in the project time-life. The budget allocated for SMEs cluster development (2000 USD/province for the SME Cluster Development action plan implementation) is regarded as very small to create changes in higher export volumes of the SME cluster members. In many cases where the SME clusters have not been existed such as Pla Tuu in Dawei (Myanmar), Dried Pectoralis in Ca Mau (Vietnam), Custard Apple in Tay Ninh (Vietnam) and eight sectors in Cambodia, the SME members need tremendous support (technically and financially) to be competent of exporting their product aboard.

Component B: The success criterion “trade and investment promotion events that are designed and

implemented in cooperation with various stakeholders including non-state actors” appears to be difficult to achieve. In some provinces where the local governments have limited or no budget allocated for trade and invest promotion events, particularly Ca Mau, Kien Giang and Tay Ninh provinces in Vietnam, Dawei in Myanmar and 8 provinces in Cambodia, the probability that the local government (and the non-state agencies) are going to design and implement any trade and investment within the project time-life is low. It seems that the success criterion was set without information about the local budget allocation for the desirable events.

Component C: There are some indicators that might not be achievable in the time span of two years. Those

indicators include: “BDS providers (CCI, Department of Commerce and Industry, Border authorities) applied knowledge and skills and learning experience from SLV and AEC awareness workshop to improve their services for SMEs” and “number and percentage of BDS users (farmers, association, SMEs/clusters, traders, investors) are satisfied with products and services delivered by BDS providers support by the project.” The three activities under the Component C which are designed to strengthen BDS providers’ capacity including: (1) SLV to one ASEAN country; (2) Research on SME development in SEC and dissemination workshop and (3) Workshop on SME integration into AEC in SEC]. They are one-off events meaning there will not be following up activities supported by the Project. Therefore, there is a high risk that the targeted participants will not transform the equipped knowledge and skills into their services provided to their users. BDS users (farmers, association, SMEs/clusters, traders, investors might not get a higher level of satisfaction.

#2: Selection of Participants in Some Project Activities First, a fixed number of two BSD providers per province as defined in some indicators might

prevent the Project from engaging some relevant BDS providers. The fact is that BDS providers are very different from country to country and in some cases, there are many potential BDS providers that will be engaging in supporting the SMEs like in Thailand and Myanmar.

Second, if the business development services are defined in the Project limited to trade-faire

or investment forum, the selection of the training/workshop participants should be based on the mandate of the state agencies. For example, in Vietnam, investment forum is normally


initiated and organized by the Provincial Department of Planning and Investment and Trade Fair is organized by Provincial Department of Trade and Industry. In Thailand, the Provincial Office of Commerce Affairs, the Provincial Office of Industry and the Provincial Office of Agriculture are all playing the role of the organizers of business matching/investment forum and trade fairs while the Chambers of Commerce and Industry and Trade Federations are not directly supporting the SMEs in the selected sectors in with those services. In Dawei, Myanmar, neither state agencies nor non-stage organizations (as SME Association, Fishery Federation) have ever organized such events and their roles remain unclear for the time being.

Last, there are some indicators related to members of Chambers of Commerce and

Industries, but in many provinces, the SMEs operating in the selected sectors are not members of Chamber of Commerce or Industry Federation. Hence, additional efforts need to be in place to have the target SMEs registered to the CCIs in the local. Otherwise, whether to include the CCI representatives in these activities would need further consideration.


ANNEXES Annex 1 – Field Visit Agenda Vietnam: September 24 – October 5, 2016

Sep 24 (Saturday)

Sep 25 (Sunday)

Sep 26 (Monday)

Sep 27 (Tuesday)

Sep 28 (Wednesday)

Sep 29 (Thursday)

Sep 30 (Friday)

Travel (air)

Khon Kaen – Bangkok - Ho

Chi Minh

Travel (Land): Ho Chi Minh

City - Can Tho

Fieldwork @ Can Tho

Fieldwork @ Can Tho

Travel (Land): Can Tho - Ca

Mau

Fieldwork @ Ca Mau

Fieldwork @ Ca Mau

Travel (Land): Ca Mau – Ho Chi Minh City

Travel (Land): Ho Chi Minh City – Kien

Giang

Dutta Chi Pham

Dutta Chi Pham

Dutta Chi Pham

Dutta Chi Pham

Dutta

Sa-nga

Oct 1 (Saturday)

Oct 2 (Sunday)

Oct 3 (Monday)

Oct 4 (Tuesday)

Oct 5 (Wednesday)

Oct 6 (Thursday)

October 7 (Friday)

Fieldwork

@Kien Giang

Day Off Fieldwork @Kien Giang

Travel (Land): Kien Giang -

Tay Ninh

Fieldwork @ Tay Ninh

Fieldwork @ Tay Ninh

Travel (Land): Tay Ninh – Ho

Chi Minh

Travel (Air): Ho Chi Minh – Bangkok – Khon Kaen

Members Sa-nga

Chi Pham Sa-nga

Chi Pham Sa-nga

Chi Pham Sa-nga

Chi Pham Sa-nga

Chi Pham Sa-nga

Cambodia: October 16 – November 2, 2016

Oct 15 (Saturday)

Oct 16 (Sunday)

Oct 17 (Monday)

Oct 18 (Tuesday)

Oct 19 (Wednesday)

Oct 20 (Thursday)

Oct 21 (Friday)

Travel (Air): Khon Kaen – Bangkok –

Phnom Penh Travel (Land): Phnom Penh -

Kampot

Fieldwork @ Kampot

Travel (Land): Kampot –

Preah Sihanouk

Fieldwork @

Preah Sihanouk

Fieldwork@ Preah

Sihanouk

Travel (Land) Preah

Sihanouk – Koh Kong

Fieldwork@ Koh Kong

Members Dutta

Sopheak Dutta

Sopheak Dutta

Sopheak Dutta

Sopheak Sopheak Quan

Sopheak

Oct 22 Oct 23 Oct 24 Oct 25 Oct 26 Oct 27 Oct 28


(Saturday) (Sunday) (Monday) (Tuesday) (Wednesday) (Thursday) (Friday)

Fieldwork@ Koh Kong

Travel (Land): Koh Kong – Kampong Chhnang

Fieldwork @ Kampong Chhnang

Fieldwork @ Kampong Chhnang

Travel (Land):

Kampong Chhnang –

Pursat

Fieldwork@Pursat Fieldwork@Pursat

Travel (Land): Pursat –

Battambang

Fieldwork @ Battambang

Members Quan

Sopheak Quan

Sopheak Quan

Sopheak Quan

Sopheak Quan

Sopheak Quan

Sopheak Sopheak

Oct 29

(Saturday) Oct 30

(Sunday) Oct 31

(Monday) Nov 1

(Tuesday) Nov 2

(Wednesday) Nov 3

(Thursday) Nov 4

(Friday)

Travel (Land):

Battambang – Banteay Meanchey

Fieldwork@B

anteay Meanchey

Day Off Fieldwork@Banteay

Meanchey

Travel (Land):

Banteay Meanchey – Svay Rieng

Fieldwork @ Svay Rieng

Fieldwork@Svay Rieng

Travel (Land) Svay Rieng – Phnom Penh

Travel (Air) Phnom Penh –

Bangkok – Khon Kaen

Members Sopheak Sopheak Sopheak Sopheak Sopheak

Myanmar: November 1 – 4, 2016 and Thailand: November 5 – 20, 2016

Oct 29 (Saturday)

Oct 30 (Sunday)

Oct 31 (Monday)

Nov 1 (Tuesday)

Nov 2 (Wednesday)

Nov 3 (Thursday)

Nov 4 (Friday)

Travel (Air): (1) Khon Kaen –

Bangkok – Yangon

(TG 2041 / PG 707)

(2) Hanoi –

Yangon (HVN 957)

Travel (Air): Yangon – Dawei

Fieldwork@Dawei

Fieldwork@Dawei Fieldwork@Dawei

Members Toru

Chi Pham Toru

Chi Pham Toru

Chi Pham Toru

Chi Pham

Nov 5 (Saturday)

Nov 6 (Sunday)

Nov 7 (Monday)

Nov 8 (Tuesday)

Nov 9 (Wednesday)

Nov 10 (Thursday)

Nov 11 (Friday)


Travel (Air): Dawei –

Yangon – Bangkok

Travel (Land) Bangkok –

Kanchanaburi

Fieldwork @ Kanchanaburi

With SME

Cluster (Banana Fruit)

Fieldwork @ Kanchanaburi

Travel (Land): Kanchanaburi – Ratchaburi

Fieldwork @ Ratchaburi

Fieldwork @ Ratchaburi

Travel (Land): Ratchaburi – Prachinburi

Fieldwork @ Prachinburi

Members Toru

Chi Pham Toru

Ronnarit Chi Pham

Toru Ronnarit

Chi Pham

Toru Ronnarit

Chi Pham

Toru Ronnarit

Chi Pham

Ronnarit Chi Pham

Ronnarit Chi Pham

Nov 12

(Saturday) Nov 13

(Sunday) Nov 14

(Monday) Nov 15

(Tuesday) Nov 16

(Wednesday) Nov 17

(Thursday) Nov 18 (Friday)

Fieldwork @ Prachinburi

Travel (Land): Prachinburi –

Sa-kaeo

Day Off

Fieldwork@ Sa-Kaeo

Fieldwork@ Sa-Kaeo

Travel (Land):

Sa-Kaeo – Chanthaburi

Fieldwork@ Chanthaburi

Fieldwork@ Chanthaburi

Travel (Land): Chanthaburi–

Trat

Fieldwork@Trat

Members Ronnarit

Chi Pham Ronnarit

Chi Pham Ronnarit

Chi Pham Ronnarit

Chi Pham Ronnarit

Chi Pham Ronnarit

Chi Pham Ronnarit

Chi Pham

Nov 19

(Saturday) Nov 20 (Sunday)

Nov 21 (Monday)

Nov 22 (Tuesday)

Nov 23 (Wednesday)

Nov 24 (Thursday)

Nov 25 (Friday)

Travel (Ferry): Trat - Ko

Kood (island) Fieldwork @Ko Kood

Travel (Air): (1) Trat –

Bangkok – Khon Kaen

(PG 302 / TG 2048)

(2) Trat – BKK- Hanoi

(PG302 / HVN 614)

Members

Ronnarit Chi Pham

Ronnarit Chi Pham


Annex 2 – List of People Met Cambodia Kampot Province Name Gender Organization Bun Narin Mr Salt Production Community Chan Sopheak Mr SME Kung Sunthean Mr Department of Industry and Handicrafts Im Kimsophorn Mr Department of Industry and Handicrafts Chon Chang Mr Chamber of Commerce Seng Nary Ms Department of Industry and Handicrafts Bun Chandara Mr Salt Production Community Bun Barang Mr Salt Production Community

Preah Sihanouk Province Name Gender Organization Som Savat Mr Department of Industry and Handicrafts Phorn Ratanak Mr Department of Industry and Handicrafts Seng Samnang Ms Department of Commerce Chin Samnang Mr Dry Shrimp Production

5 shrimp producers All

female Dry Shrimp Production Lao Kang Mr Chamber of Commerce Chhon Buntha Mr Chamber of Commerce Sok Sung Mr Chamber of Commerce Ly Kimhur Mr Chamber of Commerce Khoun Bunse Mr Chamber of Commerce Sok Prekpreang Mr Chamber of Commerce Veng Lyluch Mr Chamber of Commerce Vann Sokheng Mr FASMEC Sokha Mardy Ms FASMEC Koh Kong Province Name Gender Organization

Ien Savan Mr Department of Industry and Handicrafts Ke Kimya Mr Chamber of Commerce Salim Farit Mr Department of Commerce Ly Rithy Mr Department of Commerce Sim Naren Mr Department of Industry and Handicrafts Sang Veasna Mr Department of Industry and Handicrafts Chi Lyheng Mr Fish Sauce Production Thuk Chanthy Ms Department of Industry and Handicrafts Sos Samoun Ms Department of Industry and Handicrafts

Un-named Mr Fish Sauce Production


Kampong Chhnang Province Name Gender Organization

Tit Nan Mr Department of Industry and Handicrafts Sar Piseth Mr Department of Industry and Handicrafts Hy Ratana Mr Chamber of Commerce Ngoy Sastra Mr Chamber of Commerce Un-named Mr Chamber of Commerce Un-named Mr Chamber of Commerce Un-named Mr Chamber of Commerce Un-named Ms Cluster Un-named Ms Cluster Un-named Ms Cluster Un-named Ms Cluster

Pursat Province Name Gender Organization

Chhe Vansoda Mr Department of Industry and Handicrafts Kim Channary Ms Chamber of Commerce Sem Sothea Mr Department of Agriculture Bun Saoratt Mr Department of Commerce Sao Vannak Mr Department of Industry and Handicrafts Chheng Khandy Mr Department of Agriculture Un Norn Mr Department of Industry and Handicrafts Un-named Ms Chamber of Commerce Bun Saoratt Mr Chamber of Commerce Un-named Mr Cluster Un-named Mr Cluster Un-named Mr Cluster Un-named Mr Cluster Un-named Ms Cluster

Battambang Province Name Gender Organization

Ho Dany Ms Department of Industry and Handicrafts Vieng Soman Mr Department of Industry and Handicrafts Phorn Vantha Mr Department of Commerce Ieng Panhaphearak Mr Department of Commerce Ly Leangly Ms Chamber of Commerce Tim Bamrong Mr Department of Industry and Handicrafts Keung Sokheng Mr Department of Industry and Handicrafts Un-named Mr Cluster Un-named Ms Cluster


Banteang Meanchey Province Name Gender Organization

Nhel Bunthoeun Mr Department of Industry and Handicrafts Kim Chamroeun Mr Department of Industry and Handicrafts Chan Heng Mr Chamber of Commerce Oeung Sienghy Mr Chamber of Commerce Dom Vanndy Mr Department of Commerce Un-named Mr Department of Industry and Handicrafts Un-named Ms Cluster Un-named Ms Cluster

Svay Rieng Province Name Gender Organization

Sok Long Mr Department of Industry and Handicrafts Ob Nan Mr Department of Commerce Tom Thoeun Mr Chamber of Commerce Chea Sopheara Mr Department of Commerce Sam Sithay Mr Chamber of Commerce Un-named Ms Cluster Un-named Mr Cluster Un-named Mr Cluster Un-named Mr Cluster Un-named Mr Cluster Un-named Mr Cluster Un-named Mr Cluster

Myamar Tanintharyi Region / Dawei Name Gender Organization

Zaw Myo Aung Mr Department of SMEs Development Tanintharyi Region,Directorate of Industrial Supervision and Inspection (DISI), Ministry of Industry

Soe Myint Thein Mr Department of Fishieries Tanintharyi Region Ministry of Livestock, Fisheries and Rural Development

Aung Naing Mr Dawei District Chamber of Commerce and Industry (DCCI) Khin Nyo Nyo Ms Dawei District Chamber of Commerce and Industry (DCCI) Aung Zaw Min Thce Mr Dawei District Fisheries Federation Kyaw Kyaw Thet Mr Dawei District Fisheries Federation Zaw Thura Mr Dawei District Fisheries Federation Bo Bo Aung Mr Dawei District Fisheries Federation Shein Thce Lwin Mr Dawei District Fisheries Federation

Ye Htut Naing Mr Tanintaryi Region Chamber of Commerce and Industry (TCCI)

Ko Boo Swam Mr Tanintaryi Region Chamber of Commerce and Industry


(TCCI)

Naing Zaw Mr Tanintaryi Region Chamber of Commerce and Industry (TCCI)

Hin Mgcho Mr GAD Dawei District

Soe Moe Kyaw Mr Directorate of Industrial Supervision and Inspection (DISI), Ministry of Industry

Myo Myint Oo Mr Department of Commerce Tanintharyi Region Thein Win Mr Dawei SME Association Htein Thein Mr Ice Broker Ye Lin Oo Mr Fisherman Tin Soe Hlaing Mr DOCA Thida Khaing Ms SME

Theu Lwin Mr Department of SMEs Development Tanintharyi Region, Directorate of Industrial Supervision and Inspection (DISI), Ministry of Industry

Khin Nyein Kyi Ms Department of SMEs Development Tanintharyi Region, Directorate of Industrial Supervision and Inspection (DISI), Ministry of Industry

Thailand Kanchanaburi Province Name Gender Organization

Damrong Makrachan Mr Community Development Department (CDD) Kanchanaburi Provincial Office

Aree Moolsub Ms Kanchanaburi Provincial Industry Office Chutichat Boonchooowit

Kanchanaburi Provincial Statistics Office

Kittisak Deeponya Mr Kanchanaburi Provincial Statistics Office Napatsanun Phosri Ms Kanchanaburi Provincial Statistics Office Worawit Meknopparat Mr Office of Commercial Affairs Kanchanaburi Janyaporn Nuchthaworn Ms Kanchanaburi Provincial Cooperative Office Jakchanok Phirom Mr Kanchanaburi Provincial Cooperative Office Chintana Srasamarng Ms Siam Banana Prasert Wongjeen Mr. Nongmuk Anuparb Mr Chamber of Commerce Kanchanaburi Sahaphan Mr Chamber of Commerce Kanchanaburi Samtapang Theparong Mr Chamber of Commerce Kanchanaburi

Ratchaburi Province Name Gender Organization Udom Jaiyen Mr Federation of Thai Industries Thida Kongbea Ms Chamber of Commerce Narongsak Chuensuchon Mr NC Coconut Amporn Thawonkasianan Ms Prayoon Visuttipaisan Mr Group of Export Organic Fruit Product


Sira Paleewong Mr Group of Export Organic Fruit Product

Wichai Promyou Mr Ratchaburi Provincial Agricultural Extension Office

Pakphoom Archa Mr Ratchaburi Provincial Cooperative Office Ngernsopha Ms Ratchaburi Provincial Industry Office Ploy Ms Ratchaburi Provincial Statistics Office Nethchanok Jai-eiam Ms Ratchaburi Provincial Community Development Office

Prachinburi Province Name Gender Organization Kreangyod Thongchuang Mr THONGPEN MARKETING CO.,LTD Wanpen Seepakdee Ms THONGPEN MARKETING CO.,LTD Nantawan Ngowan Ms Prachinburi Provincial Commercial Office Mukda Rodjan Ms Provincial Cooperative Promotion Department RaReRan Bunyaphasampa Ms Prachinburi Statistical Office Suriyon Omwatthana Mr Prachinburi Provincial Community Development Office Siwapod Phuwijitsuwan Mr Community Enterprise

Sa-Kaeo Province Name Gender Organization Sunisa Janlekha Ms Sa-Kaeo Community College

Kowit Sarachiw Mr Sakeao Provincial Office of the Non-formal and informal Education

Aumpon Sukhomkhet Ms Sa-Kaeo Community College Korrawan Jandaphon Ms Office of Small and Medium Enterprise Promotion

Kritsada Trisorn Mr Bank for Agriculture and Agricultural Cooperatives, Sa-Kaeo branch

Natpaphat Janhom Ms Sa-Kaeo Chamber of Commerce Pramuan kheawkham Mr Sa-Kaeo Chamber of Commerce Wiphon Srilerd Mr Muang Sa-Kaeo District Community Development Office Sompon Manorat Ms Muang Sa-Kaeo District Community Development Office Aoithip JamJod Ms Processing Group Aranya Phobuddee Ms Processing Group Pramuan Kongjanda Ms Processing Group Aonsri Dangmano Ms Processing Group Ratree Jantakhun Ms Processing Group Sudon Siriphet

Processing Group

Boonchuay Suttitamat Mr Thai Herbal Materials Processing Development Center Kwansitti Janthon Mr Thai Herbal Materials Processing Development Center Nipaporn SinSoeng Ms Community Development Office Saarit Nonpayom Ms Industry Office of Srakaeo Pitsanu Klaijaytdee Mr Cooperative of Srakaeo Acting Sub Lt. Jane Sirigamnert

Provincial Cooperative Office


Surat Sang-Aroon Ms Housing Office of Srakaeo Ratee Prasongsuk Ms Agriculture Office of Srakaeo Janpen sonsomsuk Ms Commercial Office of Srakaeo

Chanthaburi Province Name Gender Organization Varat Sinprasitkun Mr The Federation of Chantaburi Industries Songkran Suebsiripoonchai Mr The Federation of Chantaburi Industries Saifon Laengla Ms Provincial Cooperative of Chantaburi Sasithon Wiset Ms Provincial Cooperative of Chantaburi

Supaap Kerdboon Mr Provincial Cooperative of Chantaburi

Chanida Wongkaew Ms Provincial Cooperative of Chantaburi Ampai Kamsat Mr Ma-Kaam Cooperative Ltd. Pitchaya Ponmak Ms Ma-Kaam Cooperative Ltd. Supap Gertbun Mr Provincial Cooperative Office Chanida Wongkaew Ms Provincial Cooperative Office Suchada Sunton Ms Ma-Kaam Cooperative Ltd. Aroon Katunyoo Mr Ma-Kaam Cooperative Ltd.

Trat Province Name Gender Organization Prasert Siri Mr Trat Chamber of Commerce Warintip Nontachat Ms Trat Chamber of Commerce Surachit Maneechot Mr Trat Community Development Office Jarunee Kumthong Ms Trat Statistical Office Sirinnicha Praphawilai Ms Trat Statistical Office Kanyarat Karnjanakit Ms Trat Provincial Industry Office

Vietnam

Can Tho Province Name Gender Organization Pham Trường Yên Mr Fishery Office, DARD Can Tho

Thanh Mr Fishery Office, DARD Can Tho

Nguyen Trung Chuong Mr Department of Industry and Trade (DoIT) Can Tho Tuấn Mr Division of General Finance, DOIT Can Tho

Ninh Thuận Ms Division of Exporting and Importing, DoIT Can Tho

Duyen Anh Ms Division of Industry Management, DoIT Can Tho

Vu Thu Huong Ms Vietnam Pangasius Association Vo Kim Cuong Ms VCCI Can Tho Professor Long Nhat Ms Fishery Falculty, Can Tho University Nguyen Hue Minh Mr Thoi An Pangasius Cooperatives (Omon District) Huyen Thanh Ro Mr Thoi An Pangasius Cooperatives (Omon District)


Ca Mau Province Name Gender Organization

Nguyen Viet Trung, Mr Department of Industry and Trade (DoIT) Phan Thanh Trang, Ms Department of Industry and Trade (DoIT) Nguyen Van Khai Mr Industry and Trade Promotion Center Ngo Van Cuong, Mr Department of Industry and Trade (DoIT)

Pham Thanh Hai Ms Department of Industry and Trade (DoIT)

Ta Van Hieu Mr Department of Industry and Trade (DoIT) Le Song Hung Mr Fishery Office under DARD Truong Quoc Binh Mr Ca Mau Fishery Association Ngo Thanh Linh Mr Ca Mau Fishery Process and Export Association Truong Thi Mo Ms College of Business Administration and Management Tinh Mr The Division of ARD in Tran Van Thoi district Mr Viet Mr Fishery Office under DARD (Ca Mau province)

Le Minh Duc Mr Farmer and Processor of Dried Pectoralis (the processor brand in Ba Duc Dried Pectoralis

Kien Giang Province Name Gender Organization Ngo Quang Binh Mr Import and Export Division, DOIT Kien Giang

Huynh Thanh Phong Mr Trade Promotion and Enterprise Support Division, DOIT Kien Giang

Ngoc Anh Ms District Economics Division, Kien Luong District Nguyen Van Do Mr District Economics Division, Kien Luong District Tran Thanh Kiet Mr DARD Kien Giang Huynh Sy Tuan Mr Shrimp Farmer

Tay Ninh Province Name Gender Organization Le Ngoc Thach Mr Tay Ninh Trade Promotion Center, DOIT Tay Ninh Le Khanh Trinh Mr Investment Support Division, DOIT Tay Ninh Lam Van Tinh Mr DARD Kien Giang Trang Ms General Planning Division, DOIT Tay Ninh Dung Ms Trade Management Division, DOIT Tay Ninh Ha Chi Mang Mr Thanh Tan Custard Apple Cooperative


Annex 3 – Samples of Questionnaires (for One Country)

Project Enhancing of Small and Medium sized Enterprises (SMEs) in the Southern Economic Corridor of ASEAN Mekong Sub region (AMS)

SME Actor Survey Questionnaire City/Province………………………………………………….Country: VIETNAM Date:………/……………/2016. Thank you very much for agreeing to be part of the Project baseline survey. The information you provide will be invaluable in helping us understand the obstacles and bottle-necks faced by SMEs trying to do business in the Southern Economic Corridor of ASEAN Mekong Sub region. Data collected from this report is analyzed and presented to the Mekong Institute for designing and implementing appropriate interventions. Please rest assured that all information in this survey will remain strictly confidential. While we record basic business information for data verification purposes, this information is expunged from the dataset before any analysis begins.

A. RESPONDENT INFORMATION

1 Name of respondent

…………………………………………………………………………………..

2 Address ……………………………………………………………………………………………………….. 3 Telephone

number ………………………………………………………………………………………………………..

4 Email address ……………………………………………………………………………………………………….. 2 Gender of

respondent Male Female

B. OVERVIEW OF YOUR BUSINESS

B1 Which sector are you working in? Please check the box that apply Cassava Cash fish Shrimp Other (please specify)……………………………………………. Dried Siamese gourami (cá sặc/bổi khô)

Please be noted that all information below is asked related to the checked sector ONLY. B2. What is the form of your business? Check the box that apply

A household Go to B2.a (1) and B2.a (2) A group of common interest Go to B2.b (1) and B2.b (2) A community development enterprise (CDE) Go to B2.b (1) and B2.b (2) A Cooperative Go to B2.b (1) and B2.b (2) A Private enterprise Go to B2.c (1) and B2.c (2) A Limited company Go to B2.c (1) and B2.c (2) A Joint Stock company Go to B2.c (1) and B2.c (2) Other (please specify)………………….. Go to B2.c (1) and B2.c (2) B2.a (1) In what year your household started its economic activity in the selected sector?......................YEAR B.2. a (2) What is the size se of your household economic activity in the selected sector? Since you started As of September 2016 Capital (in million VND) Number of labors you hired (full time and seasonal) Number of female labors you hired (full time and seasonal) Number of family labors (full time and seasonal) Number of labors you hired coming from poor family (e.g. less than 2 USD/day)

B2.b (1) In what year was your group/cooperative/community development enterprise established? ....................YEAR B.2. b (2) What is the size se of your group/cooperative/community development enterprise in the selected sector? As of establishment As of September 2016 Actual (implemented) capital (in million VND) Total number of member/shareholders Total number of labors (full time and seasonal) Number of labors coming from poor family (e.g. less than 2 USD/day)

Number of female labors


B2.c (1) In what year was your company started its operation in the sector? ....................YEAR B.2. c (2) What is the size se of your company in the selected sector? Please insert your answer in each cell As of establishment September 2016 Actual (implemented) capital (in million VND) Total number of labors (full time and seasonal) Number of labors coming from poor family (e.g. less than 2 USD/day)

Number of female labors B 3. Which stages / areas is your business engaging in the selected sector? Please check all that apply

Input providing Processing Producing (farming, fishing) Exporter (direct or via a third party) Collecting/Trading Other (please

specify)…………………………………………….

B 6 Who is your customer? Please check all that apply Producers (farmers/fishermen) Abroad Importer Processor Retailer Collector/Trader End-user Exporter Other (please

specify)……………………………………………. B 7. Please let us know how your business’s profit margin over the last three years? Please check ONLY ONE box for each year.

Year (net profit after taxes/revenue) 2013 2014 2015 Loss of 10% of revenue or greater Between 10 and 0% of revenue loss Broke even Between 0 and < 10% of revenue Between 10% and <20% of revenue profit margin Over 20% of revenue profit margin

B 8. Please estimate the sales of your business? 2015 In the next 3

years Total volume (in tons or in unit, indicate which apply) Total value of sales (in million VND) Total value of direct export (in million VND) Total value of export via a third party (in million VND)

C. ENGAGEMENT INTO A SME CLUSTER/SME BUSINESS NETWORK

C1. Have you ever heard about SME business cluster/business network and/or export consortium? Please check the box that apply

No, I have never heard of it (if not, please read the definition below) Yes, I have heard of it but I do not understand what it means (if so, please read the definition below) Yes, I understand what it means (go to C2)

SME cluster: “Geographical concentration of interlinked companies and institutions in related branches of industry that complement each other by joint relations of exchange and activities along one (several) value creation chains.” (Michael Porter, 1990) SME clustering and networking is characterized by an emphasis on the promotion of efficient systems of relations between enterprises and between enterprises and institutions which allow enterprises to overcome their isolation and reach new collective competitive advantages beyond the reach of individual small firms. This emphasizes the development of local institutions to act as facilitators of the networking process, or "system integrators". These should support the emergence of a joint entrepreneurial vision involving the whole business system - composed by firms, their suppliers, buyers and support institutions. Indeed, it is this emphasis on the whole business system - and not on the individual enterprise - that constitutes the main difference between networking programmes and other traditional technical cooperation programmes (UNIDO). Export Consortium: An export consortium is a voluntary alliance of firms with the objective of promoting the export of goods and services of its members through joint actions. An export consortium is a formal organization to promote medium- to long-term strategic cooperation among firms, and it organizes joint activities to facilitate access to foreign markets. Most consortia are non-profit entities, and members retain their financial, legal, managerial, and commercial autonomy. So, despite their participation in the export consortia, member firms do not give up any control over their business to others. This is the main difference between consortia and other types of strategic alliances (UNIDO).


C2. Have your ever participated in any SME business cluster/business network or export consortium in your province? Please check the box that apply

There has not been any such SME business cluster/business network export consortium operating in my province

Go to C2.(a)

There has been SME business cluster/business network export consortium operating in my province, I have not participated

Go to C2.(b)

I have participated in a SME cluster/network/export consortium but gained nothing from this participation

Go to C2.(c)

I have participated in a SME cluster/network/export consortium but gained little from this participation

Go to C2.(c)

I have participated in a SME cluster/network/export consortium and benefited from this participation

Go to C2.(d)

C2.a. Do you think participating in a SME cluster/network/export consortium able your business to (Please check the box that apply)

Capture market opportunities which require large production quantities

Yes No No idea

Capture market opportunities which require homogenous standards

Yes No No idea

Capture market opportunities which require regular supply

Yes No No idea

Achieve economies of scale in the purchase of inputs (equipment, raw materials)

Yes No No idea

Achieve economies of scale in the purchase of consultancy services

Yes No No idea

Internalize functions such as training, market intelligence

Yes No No idea

Internalize functions such as logistics Yes No No idea Foster cumulative improvements in productive capabilities and innovation

Yes No No idea

Lobby to the policy makers Yes No No idea C2.(b) Please let us knows why you are not participating in the SME cluster/network/export consortium that has existed in your province? Please check all that apply.

I do not see any benefits in participation in that SME cluster/network/export consortium I do not know how to participate There is no capable facilitator of that SME cluster/network/export consortium Participation consumes time and efforts Participation costs money I do not know exactly why Simply I have never thought of participating into such cluster/network/consortium Other, Please specify……………………………………………………………………………………………………………..

C2.(c) Please explain why you gained nothing or little form the participation in the SME cluster/network/export consortium that has existed in your province? Please check all that apply.

There is no capable facilitator of that SME cluster/network/export consortium The members are not well coordinated The members are not willing to support resources for the cluster/network/consortium to operate The local Government is not provide needed support The mandate and mission of the cluster/network/consortium are unclear There are too few members participating in the cluster/network/consortium Other,

please specify…………………………………………………………………………………… C2.(d). What benefits that your business gains from participating in that SME cluster/network/export consortium?

Capturing market opportunities which require large production quantities

Yes No No idea

Capturing market opportunities which require homogenous standards

Yes No No idea

Capturing market opportunities which Yes No No idea


require regular supply Achieving economies of scale in the purchase of inputs

Yes No No idea

Achieving economies of scale in the purchase of consultancy services

Yes No No idea

Internalization of functions such as training, market intelligence

Yes No No idea

Internalization of functions such as logistics Yes No No idea Fostering cumulative improvements in productive capabilities and innovation

Yes No No idea

Lobbying to the policy makers Yes No No idea C3 In case a SME cluster/network/export consortium is formed and operates in your province related your business, of the existing SME cluster/network/export consortium is enhanced are you willing to:

Actively participate in the SME cluster/network/export consortium activities?

Yes No No idea

Play the role of the SME cluster/network/export consortium facilitators?

Yes No No idea

Play the role of lead firm in the SME cluster/network/export consortium?

Yes No No idea

Contribute resource (money, HR) to foster the SME cluster/network/export consortium?

Yes No No idea

D. BUSINESS INFORMATION and E-COMMERCE

D1. What are your primary sources of information about business opportunities, particularly seeking for clients, suppliers, investors and collaborators? Check all that apply

(a) Don’t have a good source of information (i) Industry Association (b) Individual experience (k) Trade fair (c) In-house research (l) Workshop/Seminar (d) Friend and personal network (m) Media Commercial (advertisement) (e) Provincial state agencies (o) Facebook, Zalo (f) Chamber of Commerce and Industry (p) Directory g) Business Association (q) Websites that provide profiles of clients,

suppliers, investors and collaborator (h) SMEs Association D 1.(a) Please indicate top three sources of information (from a to q) 1…………………..2………………………3……………….. D 2. Electronic commerce (e-Commerce) in your business Electronic commerce, commonly written as e-commerce is the trading or facilitation of trading in products or services using computer networks, such as the Internet or online social networks. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web (www) for at least one part of the transaction's life cycle although it may also use other technologies such as e-mail.

Have you employed any of the following? Online shopping web sites for retail sales direct to consumers

Yes No No idea

Providing or participating in online marketplaces, which process third-party business-to-consumer or consumer-to-consumer sales

Yes No No idea

Business-to-business buying and selling Yes No No idea Gathering and using demographic data through web contacts/social media

Yes No No idea

Business-to-business electronic data interchange Yes No No idea Marketing to prospective and established customers by e-mail or fax

Yes No No idea

Engaging in pretail for launching new products and services

Yes No No idea

https://en.wikipedia.org/wiki/Trade

https://en.wikipedia.org/wiki/Internet

https://en.wikipedia.org/wiki/Social_networking_service

https://en.wikipedia.org/wiki/Mobile_commerce

https://en.wikipedia.org/wiki/Mobile_commerce

https://en.wikipedia.org/wiki/Electronic_funds_transfer

https://en.wikipedia.org/wiki/Supply_chain_management

https://en.wikipedia.org/wiki/Online_advertising

https://en.wikipedia.org/wiki/Online_transaction_processing

https://en.wikipedia.org/wiki/Electronic_data_interchange


https://en.wikipedia.org/wiki/Inventory_management_software

https://en.wikipedia.org/wiki/Data_collection

https://en.wikipedia.org/wiki/World_Wide_Web

https://en.wikipedia.org/wiki/Online_shopping

https://en.wikipedia.org/wiki/Online_marketplace

https://en.wikipedia.org/wiki/Business-to-business


https://en.wikipedia.org/wiki/Pretail


Online financial exchanges for currency exchanges or trading purposes

Yes No No idea

D.3 If receiving technical support, are you interested in employing any of the following?

Online shopping web sites for retail sales direct to consumers

Yes No No idea

Providing or participating in online marketplaces, which process third-party business-to-consumer or consumer-to-consumer sales

Yes No No idea

Business-to-business buying and selling Yes No No idea Gathering and using demographic data through web contacts/social media

Yes No No idea

Business-to-business electronic data interchange Yes No No idea Marketing to prospective and established customers by e-mail or fax

Yes No No idea

Engaging in pretail for launching new products and services

Yes No No idea

Online financial exchanges for currency exchanges or trading purposes

Yes No No idea

Business matching platform (SME database) Yes No No idea

E. CURRENT SITUATION OF BDS PROVISION and INVESTMENT/TRADE PROMOTION

Business Development Service (BDS) is referred to“… services that improve the performance of the enterprise, its access to markets, and its ability to compete. The definition of ’business development service’… includes an array of business services [such as training, consultancy, marketing, information, technology development and transfer, business linkage promotion, etc.], both strategic [medium to long term issues that improve performance] and operational [day-to-day] issues. BDS are designed to serve individual businesses, as opposed to the larger business community.” (Committee of Donor Agencies for Small Enterprise Development, 2001) E 1. Is the following BDS accessible to your business, if yes, please check who the service provider is?

BDS

There is no such BDS accessible

In our province

There is such BDS provider

but I have never used

Yes (Please check the supplier) Provincial state

agencies

Private agencies located in

the province

Private agencies

located out of the

province

Do not know who is

the provider

Regional export – oriented consultancy (export to countries in Southern Economic Corridor)

Global export-oriented consultancy Consultancy and capacity building for capturing the business from penetration into Southern Economic Corridor

Consultancy and capacity building for capturing the business opportunities from ASEAN Economic Community (AEC)

Investment linkages SME network linkages Market information provision Legal consultancy Head-hunting Business partner linkage Trade promotion and trade fair Technology and Technology related services

Tax Consultancy Accounting and Finance

https://en.wikipedia.org/wiki/Online_shopping

https://en.wikipedia.org/wiki/Online_marketplace

https://en.wikipedia.org/wiki/Business-to-business


https://en.wikipedia.org/wiki/Pretail


BDS

There is no such BDS accessible

In our province

There is such BDS provider

but I have never used

Yes (Please check the supplier) Provincial state

agencies

Private agencies located in

the province

Private agencies

located out of the

province

Do not know who is

the provider

Consultancy/Training Business Administration Training

E2. What describes best the situation of trade and investment promotion activities in your province related to your business (goods and services)?

There have investment promotion events in the province in the last 2-3 years.

False True (go to E3)

There have domestic trade fairs in the province in the last 2-3 years.


There have international trade fairs in the province in the last 2-3 years.


There have export promotion events in the province in the last 2-3 years.


There have SME database launching in the last 2-3 years


E3. If there were events organized in your province in the last 2 – 3 years, did you participate in any? Please indicate how effective the event(s) was.

Event Did not participate

Yes (Please check the level

of effectiveness) Not effective at all

Little effective

Fairly effective

Effective Very effective

Investment promotion event

Domestic trade fair

International trade fair

Export promotion event

SME database launching

F. CAPACITY BUILDING NEEDS

F1. Please indicate the level of your (business) capacity? Please check the box that apply Capacity No idea Need for

capacity building No need for capacity building

Employing E-Commerce Business matching platform (SME database) Participation in a SME Cluster/Network Participation in an export consortium Penetration into Southern Economic Corridor Export to countries in Southern Economic Corridor Export to global market Penetration into Southern Economic Corridor Capturing the business opportunities from ASEAN Economic Community

Thank you for your kind cooperation!


Project Enhancing Competitiveness of Small and Medium sized Enterprises (SMEs) in the Southern Economic Corridor of ASEAN Mekong Sub region (AMS) (hereinafter referred to as

the Project) STATE AGENCY- BDS PROVIDER SURVEY QUESTIONAIRE

Province………………………………………………….Country: VIETNAM

Date:………/……………/2016. Thank you very much for agreeing to be part of the Project baseline survey. The information you provide will be invaluable in helping us understand the obstacles and bottle-necks faced by SMEs trying to do business in the Southern Economic Corridor of ASEAN Mekong Sub region. Data collected from this report is analyzed and presented to the Mekong Institute for designing and implementing appropriate interventions. Business Development Service (BDS) hereinafter is referred to “services that improve the performance of the enterprise, its access to markets, and its ability to compete. The definition of ’business development service’… includes an array of business services [such as training, consultancy, marketing, information, technology development and transfer, business linkage promotion, etc.], both strategic [medium to long term issues that improve performance] and operational [day-to-day] issues. BDS are designed to serve individual businesses, as opposed to the larger business community.” (Committee of Donor Agencies for Small Enterprise Development, 2001)

A. BACKGROUND INFORMATION

1 Name of your organization 2 Address 3 Telephone number 4 Email address 5 Position of respondent in the organization 6 Gender of respondent Male………….Female……………..

7. Province and the selected sector (product) in the Project that your organzation is engaged with. Please check the box that apply

Tay Ninh - Cassava Can Tho - Cash fish Ca Mau - Shrimp Kien Giang - Shrimp

Please be noted that all information below is asked related to the checked sector ONLY.

B. PROVINCIAL STATISTICS

B 1. Please provide the most updated statistics for the selected product for the province 2015 Sept 2016

Total land area of the province Total land area for agriculture Total land used for the selected production Number of households engaged in production The average income per capita in the selected sector Number of local individual collectors Number of traders (registered as company or cooperative) (number of traders as SMEs?)

Number of local processor that are not registered as company or cooperative Number of processor that are registered as company or cooperative (How many are SMEs?)

Total labor working in the sector Total female labor working in the sector Total production volume of the province (in tons) Total processed product volume of the province (in tons) Total export volume (in tons) Total value of export (in thousand USD)

B.2 The business associations

(a) Provincial Business Association has been established Yes No If yes, total number of members is………………………………………………. If yes, total number of SME members is………………………………………. The Provincial Business Association is operating Yes No


(b) Provincial SMEs Association has been established Yes No If yes, total number of SME members is………………………………………………. If yes, total number of SME working in the selected sector (product) is ……………………………………….

(c) Provincial Industry Association for the selected sector has been established Yes No If yes, total number of members is………………………………………………. If yes, total number of SME is ……………………………………….

B.3 The BDS Providers availability for the selected sectors

(a) Is there any university/colleges/cocational school established and operating in the province?

Yes No, go to (a1)

(a1) If yes, does it provide any BDS services in the selected sector? Yes No, go to (a2)

(a2) If no, is there any university in the neibouring province providing BDS services in the selected sector?

Yes

(b) Is there any Institutions (such as Testing laboratories, quality control, product certification) established and operating in the province?

Yes No, go to (b1)

(b1) If yes, does it provide any BDS services in the selected sector? Yes No, go to (b2)

(b2) If no, is there any university in the neighboring province providing BDS services in the selected sector?

Yes

C. YOUR CURRENT BDS PROVISION

C 1. Which BDS is your organization providing to enterprises in the selected sector (product)? If yes, how many clients that your served in 2015

Total SMEs Regional export – oriented consultancy (export to countries in Southern Economic Corridor)

No Yes

Global export-oriented consultancy No Yes Consultancy and capacity building for capturing the business from penetration into Southern Economic Corridor

No Yes


No Yes

Investment linkages No Yes SME network linkages No Yes Market information provision No Yes Legal consultancy No Yes Head-hunting No Yes Business partner linkage No Yes Trade promotion and trade fair No Yes Technology and Technology related services No Yes Tax Consultancy No Yes Accounting and Finance Consultancy/Training No Yes Business Administration Training No Yes Business database development and launching No Yes

D. THE CURRENT SITUATION OF SME CLUSTER/NETWORK/EXPORT CONSORTIUM IN YOUR PROVINCE

D 1. Have you ever heard about SME business cluster/business network? Please check the box that apply

No, I have never heard of it (if not, please read the definition below) Yes, I have heard of it but I do not understand what it means

(if so, please read the definition below) Yes, I understand what it means (go to C2)

SME cluster: “Geographical concentration of interlinked companies and institutions in related branches of industry that complement each other by joint relations of exchange and activities along one (several) value creation chains.” (Michael Porter, 1990) SME clustering and networking is characterized by an emphasis on the promotion of efficient systems of relations between enterprises and between enterprises and institutions which allow enterprises to overcome their isolation and reach new collective competitive advantages beyond the reach of individual small firms. This emphasizes the development of local


institutions to act as facilitators of the networking process, or "system integrators". These should support the emergence of a joint entrepreneurial vision involving the whole business system - composed by firms, their suppliers, buyers and support institutions. Indeed, it is this emphasis on the whole business system - and not on the individual enterprise - that constitutes the main difference between networking programmes and other traditional technical cooperation programmes (UNIDO). Export Consortium: An export consortium is a voluntary alliance of firms with the objective of promoting the export of goods and services of its members through joint actions. An export consortium is a formal organization to promote medium- to long-term strategic cooperation among firms, and it organizes joint activities to facilitate access to foreign markets. Most consortia are non-profit entities, and members retain their financial, legal, managerial, and commercial autonomy. So, despite their participation in the export consortium, member firms do not give up any control over their business to others. This is the main difference between consortium and other types of strategic alliances (UNIDO). D 2. Having read through the definition, do you think a SME cluster/network/export consortium has been established in the province related to the selected sector (product)?

SME Dluster/network Yes (go to D.3) No (go to D.4) No idea (go to D.3)

Export Donsortium Yes (go to D.3) No (go to D.4) No idea ((go to D.3)

D.3 Do you think participating in the current SME cluster/network/export consortium enables a SME to (Please check the box that apply)


Yes No No idea


Yes No No idea


Yes No No idea

Achieve economies of scale in the purchase of inputs

Yes No No idea


Yes No No idea

Utilizing the collective branding / marketing efforts

Yes No No idea


Yes No No idea

Internalize functions such as logistics Yes No No idea

Foster cumulative improvements in productive capabilities and innovation

Yes No No idea

Lobby to the policy makers Yes No No idea

D.4 In case SME cluster/network/export consortium will be formed and operate in your province, are you willing to: Actively participate in the SME cluster/network/export consortium activities?

Yes No No idea


Yes No No idea

Play the role of the SME cluster/network/export consortium facilitators? (if yes, go to C.5)

Yes No No idea

D.5 If your agency is willing to play the role of SME cluster/network/export consortium facilitator, what capacity you think you organization is lacking? Please check the box that apply

High need for capacity building

Need for capacity building

Moderate need for capacity building

No need for capacity building

SME cluster development (Cluster Development Planning, implementation and monitoring)

Export Consortium formation and operation

(Global) Value Chain Integration

E. THE CURRENT SITUATION OF TRADE AND INVESTMENT PROMOTION IN THE SELECTED SECTOR (PRODUCT) IN YOUR PROVINCE


E 1. What describes best the situation of trade and investment promotion activities in your province related to the selected sector (product)?

There have investment promotion events in the province in the last 2 - 3 years. False True (go to E2) There have domestic trade fair in the province in the last 2 - 3 years. False True (go to E2) There have international trade fair in the province in the last 2 - 3years. False True (go to E2) There have export promotion event in the province in the last 2 - 3 years. False True (go to E2) There have finance linkage event in the province in the last 2 - 3 years. False True (go to E2) There have SME database accessible to the enterprises False True (go to E2)

E2. If there were events in your province in the last 2 years, did your organization (co)organize any of the events? Please indicate how effective the event(s) was. Please check the box that apply

Event

We are NOT the event (co)organizer

Yes we are the (Please check the level of effectiveness)

Not effective at all

Little effective

Fairly effective

Effective Very effective

Investment promotion event

Domestic trade fair International trade fair Export promotion event SME database development and launching

E3. What level of your organizational capacity in field of trade and investment promotion and BDS provision particularly for SMEs in the selected sector/product? Please check the box that apply

Capacity of High need For capacity building




Business Research for field data collection and development of SEC business database

Investment promotion (targeting SMEs) Domestic trade fair (targeting SMEs) International trade fair (targeting SMEs) Export promotion (targeting SMEs) Regional export – oriented consultancy (targeting SMEs)

Global export-oriented consultancy (targeting SMEs)

Penetration into Southern Economic Corridor (targeting SMEs)

Capturing the business opportunities from ASEAN Economic Community (AEC) (targeting SMEs)

E4. What level of your organizational capacity in field of supporting SMEs in employing/utilizing the following? Please check the box that apply

Capacity of High need for capacity building




Business matching platform (SME database)

Provincial (business) information system E- Commerce

Thank you for your kind cooperation!


Project Enahancing Competitiveness of Small and Medium sized Enterprises (SMEs) in the Southern Economic Corridor of ASEAN Mekong Sub region (AMS) (hereinafter referred to as

the Project) FOR NON - STATE AGENCY- BDS PROVIDER SURVEY QUESTIONAIRE Province………………………………………………….Country: VIETNAM

Date:………/……………/2016. Thank you very much for agreeing to be part of the Project baseline survey. The information you provide will be invaluable in helping us understand the obstacles and bottle-necks faced by SMEs trying to do business in the Southern Economic Corridor of ASEAN Mekong Sub region. Data collected from this report is analyzed and presented to the Mekong Institute for designing and implementing appropriate interventions. Business Development Service (BDS) hereinafter is referred to “services that improve the performance of the enterprise, its access to markets, and its ability to compete. The definition of ’business development service’… includes an array of business services [such as training, consultancy, marketing, information, technology development and transfer, business linkage promotion, etc.], both strategic [medium to long term issues that improve performance] and operational [day-to-day] issues. BDS are designed to serve individual businesses, as opposed to the larger business community.” (Committee of Donor Agencies for Small Enterprise Development, 2001)

A. BACKGROUND INFORMATION

1 Name of your organization 2 Address 3 Telephone number 4 Email address 5 Position of respondent in the organization 6 Gender of respondent Male………….Female……………..

7. Province and the selected sector (product) in the Project that your organzation is engaged with. Please check the box that apply

Tay Ninh - Cassava Can Tho - Cash fish Ca Mau - Shrimp Kien Giang - Shrimp

Please be noted that all information below is asked related to the checked sector ONLY. 8. Your organization is

A BDS provider working for profit An Industry Association (of the selected sector/product) A non – profit BDS provider Chamber of Commerce and Industry A SMEs Association Other (please specify)……………………………………. A Business Association

B. YOUR CURRENT BDS PROVISION

B 1. Which BDS is your organization providing to enterprises in the selected sector (product)? If yes, how many clients that your served in 2015

Total SMEs Regional export – oriented consultancy (export to countries in Southern Economic Corridor)

No Yes

Global export-oriented consultancy No Yes Consultancy and capacity building for capturing the business from penetration into Southern Economic Corridor

No Yes


No Yes

Investment linkages No Yes SME network linkages No Yes Market information provision No Yes Legal consultancy No Yes Head-hunting No Yes Business partner linkage No Yes Trade promotion and trade fair No Yes Technology and Technology related services No Yes Tax Consultancy No Yes Accounting and Finance Consultancy/Training No Yes


Business Administration Training No Yes Business database development and launching No Yes

C. THE CURRENT SITUATION OF SME CLUSTER/NETWORK/EXPORT CONSORTIUM IN YOUR PROVINCE

C 1. Have you ever heard about SME business cluster/business network? Please check the box that apply No, I have never heard of it (if not, please read the definition below) Yes, I have heard of it but I do not understand what it means (if so, please read the definition below) Yes, I understand what it means (go to C2)

SME cluster: “Geographical concentration of interlinked companies and institutions in related branches of industry that complement each other by joint relations of exchange and activities along one (several) value creation chains.” (Michael Porter, 1990) SME clustering and networking is characterized by an emphasis on the promotion of efficient systems of relations between enterprises and between enterprises and institutions which allow enterprises to overcome their isolation and reach new collective competitive advantages beyond the reach of individual small firms. This emphasizes the development of local institutions to act as facilitators of the networking process, or "system integrators". These should support the emergence of a joint entrepreneurial vision involving the whole business system - composed by firms, their suppliers, buyers and support institutions. Indeed, it is this emphasis on the whole business system - and not on the individual enterprise - that constitutes the main difference between networking programmes and other traditional technical cooperation programmes (UNIDO). Export Consortium: An export consortium is a voluntary alliance of firms with the objective of promoting the export of goods and services of its members through joint actions. An export consortium is a formal organization to promote medium- to long-term strategic cooperation among firms, and it organizes joint activities to facilitate access to foreign markets. Most consortia are non-profit entities, and members retain their financial, legal, managerial, and commercial autonomy. So, despite their participation in the export consortium, member firms do not give up any control over their business to others. This is the main difference between consortium and other types of strategic alliances (UNIDO). C 2. Having read through the definition, do you think a SME cluster/network/export consortium has been established in the province related to the selected sector (product)?

SME cluster/network Yes (go to C.3) No (go to C.4) No idea (go to C.3) Export consortium Yes (go to C.3) No (go to C.4) No idea ((go to C.3)

C.3 Do you think participating in the current SME cluster/network/export consortium enables a SME to (Please check the box that apply)


Yes No No idea


Yes No No idea


Yes No No idea

Achieve economies of scale in the purchase of inputs

Yes No No idea


Yes No No idea

Utilizing the collective branding/ marketing efforts

Yes No No idea


Yes No No idea

Internalize functions such as logistics Yes No No idea Foster cumulative improvements in productive capabilities and innovation

Yes No No idea

Lobby to the policy makers Yes No No idea C.4 In case SME cluster/network/export consortium will be formed and operate in your province, are you willing to:

Actively participate in the SME cluster/network/export consortium activities?

Yes No No idea


Yes No No idea

Play the role of the SME cluster/network/export consortium facilitators? (if yes, go to C.5)

Yes No No idea


C.5 If your agency is willing to play the role of SME cluster/network/export consortium facilitator, what capacity you think you organization is lacking? Please check the box that apply

High need

for capacity building

Need for

capacity building

Moderate need for

capacity building

No need for

capacity building

SME cluster development (Cluster Development Planning, implementation and monitoring)

Export Consortium formation and operation (Global) Value Chain Integration

D. THE CURRENT SITUATION OF TRADE AND INVESTMENT PROMOTION IN THE SELECTED SECTOR (PRODUCT) IN YOUR PROVINCE

D 1. What describes best the situation of trade and investment promotion activities in your province related to the selected sector (product)?

There have investment promotion events in the province in the last 2 years. False True (go to D2) There have domestic trade fair in the province in the last 2 years. False True (go to D2) There have international trade fair in the province in the last 2 years. False True (go to D2) There have export promotion event in the province in the last 2 years. False True (go to D2) There have finance linkage event in the province in the last 2 years. False True (go to D2) There have SME database accessible to the enterprises False True (go to D2)

D2. If there were events in your province in the last 2 years, did your organization (co)organize any of the events? Please indicate how effective the event(s) was. Please check the box that apply

Event We are NOT the event (co)organizer

Yes we are the (Please check the level of effectiveness) Not

effective at all

Little effective

Fairly effective

Effective Very effectiv

e Investment promotion event

Domestic trade fair International trade fair Export promotion event SME database development and launching

D3. What level of your organizational capacity in field of trade and investment promotion and BDS provision particularly for SMEs in the selected sector/product? Please check the box that apply





Business Research for field data collection and development of SEC business database

Investment promotion (targeting SMEs) Domestic trade fair (targeting SMEs) International trade fair (targeting SMEs) Export promotion (targeting SMEs) Regional export – oriented consultancy (targeting SMEs)

Global export-oriented consultancy (targeting SMEs)

Penetration into Southern Economic Corridor (targeting SMEs)

Capturing the business opportunities from ASEAN Economic Community (AEC) (targeting SMEs)

D4. What level of your organizational capacity in field of supporting SMEs in employing/utilizing the following? Please check the box that apply





No need for

capacity building

Business matching platform (SME database)

Provincial (business) information system

E- Commerce Thank you for your kind cooperation!

baseline survey report - mekong institute

Documents